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Dismissed For No Payment

January 13, 2019, Eastern District of Virginia – The Debtors, Health Diagnostics Laboratory, Inc (HDL), is a full-service clinical laboratory that has integrated its laboratory functions with disease management activities as a means of providing tools for practitioners to design and implement personalized plans of care for their patients. Our client, a professional services corporation provided HDL with a number of services, all of which were related to the processing and handling of blood specimens. The plaintiff sought to recover payments, worth $71,680.00 from our client as alleged fraudulent conveyances under 11 U.S.C. §§ 548 and 544(b).

We successfully established in our position statement that our client received the transfers in good faith and provided reasonably equivalent value in exchange. We also proved that the alleged transfers were at fair market value (i.e. the transactions were made by a knowledgeable purchaser and a knowledgeable seller standing on equal footing, both willing to buy on one hand and willing to sell on the other) and made at arm’s length  (i.e. the transactions were made in good faith in the ordinary course of business by parties with independent interests).

Since we established that our client received the actual and constructive fraudulent transfers in good faith and in exchange for reasonably equivalent value, the plaintiff dismissed the case for no payment.