Facts

In 2003, Mitchell and Marci Chait purchased a home from Charles and Nan Strauch. Soon after, the Chaits sued the Strauches based on allegations that the home contained defects. The Strauches prevailed in the lawsuit and was granted attorney fees and costs. The Strauches recorded a lien of the judgment against the home. However, the Chaits claimed that they no longer owned the home, and that the home was transferred to Joan Crespi and John Gerard. As a result, the Strauches sued the Chaits, Gerard, and Crespi on a creditor's claim for fraudulent conveyance.

PLAINTIFF'S CONTENTIONS:
The plaintiffs claimed that the transfer of the home to Crespi and Gerard was fraudulent because it occurred to avoid payment to the Strauches.

DEFENDANT'S CONTENTIONS:
The defense asserted that the house could not be taken as payment because it no longer belonged to them. Further, the parties entered into a contract to sell the house prior to judgment in the underlying case.

Damages

Plaintiffs sought the transfer of property set aside, attorney fees, and punitive damages.

Result

The court found in favor of the plaintiffs on all counts and set aside the transfer of property. The property must be turned over to the sheriff of Orange County for sale. While the court initially found a right to punitive damages, no punitive damages were awarded.