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Brazeal Establishes New Case Law on Fraudulent Transfers

Partner C. Ellis Brazeal, III, whose practice focuses on bankruptcy and commercial litigation, recently litigated a matter in the U.S. Bankruptcy Court for the Middle District of Alabama in which the construction of Ala. Code § 8-9A-8(d) of the Alabama Fraudulent Transfer Act was at issue.

Under this Code Section, a party who transfers value to one other than the initial transferor possesses a defense to the fraudulent transfer claim. To Jones Walker's knowledge, this defense has not been litigated before. The matter was appealed to the U.S. District Court, which certified this question of law to the Alabama Supreme Court. The Alabama Supreme Court upheld the position of Mr. Brazeal and rendered an opinion in his client's favor. The opinion can be found at: 2007 WL 2019588.