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Can I be sued as a transferee in a fraudulent transfer action if I was aquitted in the underlying case???

Sacramento, CA |

Our company, my business partner and I were all defendants in a lawsuit in which I prevailed and my partner and the company were held liable for breach of fiduciary duty. In addition, my partner and I both shared a joint bank account where our wages were deposited and used accordingly. Now since I was already sued for fraud among other things and prevailed an all counts can I still be exposed in a fraudulent transfer action since my partner and I both shared a joint account or does this fall under the res judicada rule ?????

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Attorney answers 2


This is a complex legal question which requires more detail than you have provided. You are more likely to have a valid res judicata if the second litigation is between the same parties,i.e. the plaintiff in the first suit is asking for a second bite of the apple. The use of the word acquitted suggests a criminal matter. Being acquitted in a criminal matter would not be res judicata to a subsequent civil matter. You should consult with an attorney.


I agree with Mr. Eliot, keep in mind in a civil case the standard of proof is by a perponderance of the evidence, more likely than not, whereas in a criminal case it is beyond a reasonable doubt. Also it is unlikely the parties in the criminal case are the same as in the civil case? A classic example would be the O.J. Simpson case, aquitted on criminal charges and found liable in the civil case filed by the survivors of the decedants.

Legal disclaimer:This message does not constitute legal advice and does not create an attorney-client relationship. Any statements are made for general informational purposes and do not constitute legal advice. No attorney-client privilege is created by this communication. Attorney is licensed in California only.