Is a release a “transfer”?

Originally published by David Coale.

. . . a seemingly academic question, but one of great significance to the guarantor whose liability rested on whether a transfer occurred. Acknowledging the Texas Supreme Court’s broad definition of a “transfer” as “Any mode of disposing of or parting with an asset or an interest in an asset, including a gift, the payment of money, release, lease, or creation of a lien or other encumbrance. . . . every method—direct or indirect, absolute or conditional, voluntary or involuntary—of disposing of or parting with property or an interest in property,” the Fifth Court held that standard release language in a settlement agreement did not create a transfer, even though the overrarching goal of the settlement was to bring an end to one development project, so a new one could proceed. Argent Development LP v. Las Colinas Group LP, No. 05-15-00626-CV (June 20, 2016) (mem. op.)

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

from Texas Bar Today http://ift.tt/28NBsqo
via Abogado Aly Website