Mejia v. Reed

Danilo Reed (defendant) had an affair with Rhina Mejia (plaintiff) and fathered a child with her while still married to Violeta Reed, and when Violeta filed for divorce, Danilo and Violeta entered a marital settlement agreement transferring Danilo's real estate interest to Violeta while Danilo kept his medical practice and sole responsibility for child support. Danilo later abandoned his practice and generated little income while Mejia's pending paternity and support suit against him remained unresolved, and Mejia sued claiming the marital settlement agreement was a fraudulent transfer under the Uniform Fraudulent Transfer Act (UFTA); the trial court granted Danilo summary judgment for lack of evidence of intent to defraud, but the court of appeals reversed, finding the UFTA applied and genuine factual disputes existed, prompting the state supreme court's review of a split among appellate courts.