Sherri B. Sullivan, J.
Jesse Curtis (Appellant) appeals from the circuit court's entry of summary judgment in favor of Richard James and Sharon James (collectively Respondents) on Appellant's petition seeking relief under the Missouri Uniform Fraudulent Transfer Act, Sections 428.005 to 428.059 (the Act).
In a lawsuit pending in the circuit court of Camden County, Appellant alleged he sustained personal injuries on June 1, 2012, while riding as a passenger on a motorized all-terrain vehicle while on Respondents' real property (underlying lawsuit or Camden County action).
On October 8, 2012, the Respondents created the James Family Trust (Trust), and subsequently transferred assets owned by them into the Trust.
On January 23, 2013, Appellant filed his petition in the underlying lawsuit against Respondents for his alleged injuries.
On October 23, 2013, Appellant filed the instant action against Respondents, individually and as trustees for the Trust, pursuant to the Act seeking a judgment voiding the transfers Respondents made to the Trust after June 1, 2012; attaching said assets; entering a lien in favor of Appellant against all assets in the Trust; appointing a receiver to take charge of the assets; and entering an injunction prohibiting further disposition of Respondents' assets.
On November 27, 2013, Appellant dismissed Sharon James from the underlying lawsuit and added Jeffrey Cole James as a defendant. Appellant also amended his petition, setting forth two counts: Count I against Richard James for negligent entrustment of a motorized vehicle to Jeffrey Cole James, and Count II against Jeffrey Cole James for negligence in the operation of the motorized vehicle. This action is pending in the circuit court of Camden County. Appellant does not currently
On February 2, 2014, Respondents filed a motion for summary judgment in the instant case and Appellant filed a response. On April 22, 2014, the circuit court entered summary judgment in favor of Respondents finding Appellant was not a creditor with a fraudulent transfer claim under the Act because he had not reduced his personal injury claim to a judgment or lien against Richard James in the Camden County action and could not obtain a judgment against Sharon James, who was no longer a party to the Camden County action. The circuit court also found Respondents' jointly owned real property which was conveyed to the Trust was held as tenants by the entirety and, thus, was not an "asset" under the Act that could be subjected to Appellant's claim against only one joint owner. This appeal follows.
On appeal, Appellant argues the circuit court erred in granting summary judgment in favor of Respondents on his claim under the Act, in that the court erred in (1) not dismissing Respondents' motion for failing to comply with Rule 74.04
We review the circuit court's grant of summary judgment de novo. ITT Comm. Fin. Corp. v. Mid-Am. Marine Supply Corp., 854 S.W.2d 371, 376 (Mo. banc 1993). Whether to grant summary judgment is purely an issue of law. Ashford Condo., Inc. v. Horner & Shifrin, Inc., 328 S.W.3d 714, 717 (Mo.App.E.D. 2010). We will uphold summary judgment on appeal only where there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. ITT Comm. Fin. Corp., 854 S.W.2d at 376; Rule 74.04(c). The record is viewed in the light most favorable to the party against whom judgment was entered. Citibrook II, L.L.C. v. Morgan's Foods of Missouri, Inc., 239 S.W.3d 631, 634 (Mo.App.E.D. 2007). "Facts contained in affidavits or otherwise in support of a party's motion are accepted as true unless contradicted by the non-moving party's response to the summary judgment motion." Premier Golf Missouri, LLC v. Staley Land Co., LLC, 282 S.W.3d 866, 871 (Mo.App.W.D. 2009).
A defendant, as the movant, can establish a prima facie case for summary judgment by showing any of the following: (1) facts that negate any one of the elements of a claimant's cause of action; (2) the non-movant, after an adequate period of discovery, has not been able to produce, and will not be able to produce, evidence sufficient to allow the trier of fact to find
Section 428.024 of the Act, titled "Transfers fraudulent as to present and future creditors," provides in relevant part:
Whether a conveyance was made with fraudulent intent is a question of fact. Filip v. Bucurenciu, 129 Cal.App.4th 825, 834, 28 Cal.Rptr.3d 884 (2005).
The Act provides that a "debtor" is a person who is liable on a claim and that a "creditor" is a person who has a claim. Section 428.009(6), (4). A "claim" is defined as "a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured." Section 428.009(3). Thus, under the plain language of the statute, a creditor is not required to obtain a judgment in order to pursue an action under the Act and the circuit court misapplied the law in requiring otherwise.
There is limited Missouri precedent interpreting the Act and no Missouri precedent interpreting the definition of a "claim" under the Act. The interpretation of other courts can provide guidance in analyzing an act based upon a uniform act. See Thompson v. Hanson, 142 Wn.App. 53, 174 P.3d 120, 126 (2007) (explicit purpose of the Uniform Fraudulent Transfer Act is uniformity; the interpretation of the other courts provide guidance). This Court's holding that a creditor is not required to obtain a judgment before pursuing an action under the Act is consistent
The comments to the Uniform Fraudulent Transfer Act further support this holding, emphasizing that "[a]n important reform effected by the Uniform Act was the elimination of any requirement that a creditor have obtained a judgment or execution returned unsatisfied before bringing an action to avoid a transfer as fraudulent." U.F.T.A. Refs & Annos (1984). See also, U.F.T.A. § 7. Remedies of Creditors, cmt. (4) (creditor not required to obtain judgment again debtor in order to proceed under the Uniform Act). The comments assert that under the Uniform Act's definitions of "creditor" and "claim," which are identical to those in the Missouri Act, the holder of an unliquidated tort claim or a contingent claim may be a protected creditor. U.F.T.A. § 1. Definitions, cmt. (4).
In addition to misinterpreting the requirements of the Act, the trial court's finding that summary judgment was proper because the Trust assets consisted of real property owned by Respondents as tenants by the entirety, and therefore not subject to Appellant's claim against only one joint owner under the Act, was also in error.
Section 428.009(2)(c) states that an "asset" is property of a debtor but does not include "[a]n interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant." In this case, Appellant's dismissal of Sharon James from the underlying lawsuit means he cannot collect against any assets held in tenancy by the entirety for any individual liability of Richard James. However, the summary judgment record demonstrates that Sharon James was dismissed from the lawsuit without prejudice, thereby theoretically allowing Appellant to refile suit against her and potentially obtaining a judgment against Respondents jointly.
Even in the event suit is not refiled against Sharon James, Respondents have failed to demonstrate that the Trust contains only exempt property. Respondents asserted as an undisputed material fact that they created the Trust and subsequently "Richard James and Sharon
The undisputed statement of facts simply states that Respondents "transferred assets owned by them into the Trust" and it is not clear that Respondents only transferred property held as tenants by the entirety into the Trust. In addition to the Trust, Respondents executed a Declaration of Trust and an Assignment of Personal Property. These documents provide as follows:
The Trust provides that it is Respondents' "intention that all property transferred to [the Trust], and the proceeds of such property shall continue to retain the same character as the separate property of either spouse or as the jointly owned property of both spouses ... that such property had immediately prior to being transferred to the [T]rust."
A review of the Trust documents, as submitted by Respondents in support of their motion for summary judgment, reveals that Respondents did, in fact, transfer more than the property represented in the quitclaim deeds into the Trust, and that this property has retained its characterization as either separate or joint property following the transfer. As such, the circuit court erred in entering summary judgment in favor of Respondents because there is a genuine issue of material fact as to whether the Trust contains any assets that can be subjected to Appellant's claim.
The circuit court erred in granting summary judgment in favor of Respondents because the court misinterpreted requirements of the Act, there remain genuine issues of material fact, and Respondents are not entitled to judgment as a matter of law.
The circuit court's judgment granting Respondents' Motion for Summary Judgment
Angela T. Quigless, C.J., and Patricia L. Cohen, J., concur.