White v. Pottorff
Dallas Court of Appeals No. 05-14-00675-CV (January 23, 2014)
Chief Justice Wright and Justices Lang-Miers and Stoddart (Opinion)
The Dallas Court of Appeals reversed the trial court’s determination, holding there was legally and factually insufficient evidence to support the fraudulent transfer finding. The Court observed that appellees bore the burden of proving fraudulent transfer by a preponderance of the evidence. Here, although appellees called into question the veracity of White’s testimony and evidence, they failed to carry their burden of proof. In particular, the appeals court found that (1) appellees presented no evidence the transfer of property was for less than reasonably equivalent value; (2) the effective date of the transfer was prior to White’s being served with the lawsuit; and (3) there was no evidence White maintained control over the property after its transfer. Because the appellees failed to meet their burden of proof, the Dallas Court of Appeals reversed the trial court’s supersedeas ruling. Nonetheless, the appeals court found White’s net worth to be in excess of $4 million and ordered him to post bond in the lesser of half that amount or the compensatory damages awarded at trial plus two years’ post-judgment interest.