In the latest chapter of the firm’s dogged pursuit of a malicious boyfriend who sent revealing photographs of his former girlfriend to her family, friends and business associates, Peter L. MacIsaac persuaded the Appellate Division to reverse a trial court ruling which dismissed a complaint against the boyfriend for fraudulent transfer.
In an earlier lawsuit, the firm obtained a judgment of over $500,000 on behalf of the girlfriend. When it went to collect on the judgment, it found that the boyfriend plaintiff had ‘sold’ his business to a friend and was now receiving only a modest salary as a consultant to the friend’s company. CL&L then filed a second lawsuit against the boyfriend claiming that his ‘sale’ was fraudulent. After trial, the court dismissed the complaint finding that the transfer occurred beyond the four-year statute of limitations for fraud.
On appeal, the Appellate Division agreed with Mr. MacIsaac that sufficient evidence was presented to support the fraud claim and that it was not barred by the statute of limitations. The appellate court reversed the lower court’s decision and returned the case for a new trial, before a different judge. The court also ordered the new judge to consider whether the burden of proof – which is ordinarily upon the party which brings the lawsuit – should be shifted to the boyfriend because of the plaintiff’s claim that the boyfriend lost or destroyed the critical financial documents.