Blumenstein v. Philips Insurance Center, Inc.
Supreme Court of Alaska
490 P.2d 1213 (1971)
Martin Dredging (defendant) quitclaimed a ship, the Mermaid I, back to Blumenstein (plaintiff) to satisfy an unpaid debt after becoming insolvent from a failed second venture. Blumenstein boarded the ship and performed some tasks but did not physically relocate it before winter set in. Another creditor, Philips (defendant), which had obtained a judgment against Martin, attached the ship, and Blumenstein intervened, claiming ownership predated the attachment. The trial court found the transfer presumptively fraudulent because Blumenstein had not taken full possession, and Blumenstein appealed.
Whether a transfer of goods made with intent to hinder, delay, or defraud the transferor's creditors is a fraudulent, invalid transfer.