Farm Stores v. School Feeding Corp.

1 Citing case

  1. Atlanta Shipping Corp., Inc. v. Chemical Bank

    631 F. Supp. 335 (S.D.N.Y. 1986)   Cited 69 times
    Holding that because plaintiff in a fraudulent conveyance act seeks to reclaim the property conveyed and to avoid the transaction, the concept of aiding and abetting is meaningless

    Absent an allegation that Chemical assumed a status more substantial than that of a creditor, we refuse to impose upon it any special fiduciary duty. Cf. Farm Stores, Inc. v. School Feeding Corp., 102 A.D.2d 249, 477 N.Y.S.2d 374, 378 (2d Dep't 1984), aff'd, 64 N.Y.2d 1065, 479 N.E.2d 222, 489 N.Y.S.2d 877 (1985) (Creditor who exercised his influence as a shareholder in decisions that directly affected his investments, consented to challenged fraudulent distributions had a fiduciary duty to the rights of general creditors). Atlanta already has ample recourse, of which it is taking full advantage, against IMH's other creditors.