{"id":1886,"date":"2021-10-25T03:56:23","date_gmt":"2021-10-25T03:56:23","guid":{"rendered":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/?page_id=1886"},"modified":"2022-05-09T19:38:56","modified_gmt":"2022-05-09T19:38:56","slug":"caci-4203-constructive-fraudulent-transfer-insolvency-essential-factual-elements-civ-code-%c2%a7-3439-05","status":"publish","type":"page","link":"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/caci-4203-constructive-fraudulent-transfer-insolvency-essential-factual-elements-civ-code-%c2%a7-3439-05\/","title":{"rendered":"CACI 4203 Constructive Fraudulent Transfer\u2014Insolvency\u2014Essential Factual Elements (Civ. Code, \u00a7\u20093439.05)"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2bwtdm-f619d3bb31faed68655174412acc938c\">\n#top .av-special-heading.av-kv2bwtdm-f619d3bb31faed68655174412acc938c{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-kv2bwtdm-f619d3bb31faed68655174412acc938c .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-kv2bwtdm-f619d3bb31faed68655174412acc938c .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-kv2bwtdm-f619d3bb31faed68655174412acc938c av-special-heading-h1 blockquote modern-quote  avia-builder-el-0  el_before_av_hr  avia-builder-el-first '><h1 class='av-special-heading-tag '  itemprop=\"headline\"  >CACI 4203 Constructive Fraudulent Transfer\u2014Insolvency\u2014Essential Factual Elements (Civ. Code, \u00a7\u20093439.05)<\/h1><div class='av-subheading av-subheading_below'><p>California Civil Jury Instructions CACI<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-1  el_after_av_heading  el_before_avia_sc_search '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7\">\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchform_wrapper{\nborder-radius:0px 0px 0px 0px;\nborder-color:#edae44;\nbackground-color:#edae44;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #s.av-input-field{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 #searchsubmit{\nborder-radius:0px 0px 0px 0px;\n}\n#top .avia_search_element.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7 .av_searchsubmit_wrapper{\nborder-radius:0px 0px 0px 0px;\n}\n.ajax_search_response.av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7{\npadding:0px 0px 0px 0px;\nmargin:0px 0px 0px 0px;\n}\n<\/style>\n<div  class='avia_search_element av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7  avia-builder-el-2  el_after_av_hr  el_before_av_textblock '><search><form action='https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/' id='searchform_element' method='get' class='' data-element_id='av-avia_sc_search-f7f83518637509acfac1c9900b84c1e7' ><div class='av_searchform_wrapper'><input type='search' value='' id='s' name='s' placeholder='Search CACI' aria-label='Search CACI' class='av-input-field ' required \/><div class='av_searchsubmit_wrapper '><input type='submit' value='Find' id='searchsubmit' class='button ' title='View results on search page' aria-label='View results on search page' \/><\/div><input type='hidden' name='numberposts' value='8' \/><input type='hidden' name='post_type' value='page' \/><input type='hidden' name='results_hide_fields' value='post_titles,meta,image' \/><\/div><\/form><\/search><\/div>\n<section  class='av_textblock_section av-av_textblock-e878f05c31dff72941bf1e49a00d9ff5 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><ul>\n<li><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\/\">CACI Jury Instructions Index<\/a><\/li>\n<li><a href=\"https:\/\/caci-fillable-forms.crowdsourcelawyers.com\/\">App: CACI Jury Instructions Fillable Forms Word Format<\/a><\/li>\n<\/ul>\n<\/div><\/section>\n<div  class='hr av-av_hr-91d7ccd583a503147498e120fee2ff9b hr-default  avia-builder-el-4  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-kv2bxxy5-67a3844835faba8b5936676da1bf8767\">\n#top .av_textblock_section.av-kv2bxxy5-67a3844835faba8b5936676da1bf8767 .avia_textblock{\nfont-size:20px;\n}\n<\/style>\n<section  class='av_textblock_section av-kv2bxxy5-67a3844835faba8b5936676da1bf8767 '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><h2 class=\"SS_Banner\">4203\u00a0Constructive Fraudulent Transfer\u2014Insolvency\u2014Essential Factual Elements (Civ. Code, \u00a7\u20093439.05)<\/h2>\n<hr \/>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">[<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] claims [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] was harmed because [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [transferred property\/incurred an obligation] to [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] and was unable to pay [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] money that was owed. [This is called \u201cconstructive fraud.\u201d] To establish this claim against [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">], [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] must prove all of the following:<\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">1.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] has a right to payment from [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] for [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">insert amount of claim<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">2.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [transferred property\/incurred an obligation] to [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of defendant<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">3.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] did not receive a reasonably equivalent value in exchange for the [transfer\/obligation];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">4.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s right to payment from [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] arose before [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] [transferred property\/incurred an obligation];<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">5.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was insolvent at that time or became insolvent as a result of the transfer or obligation;<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">6.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] was harmed; and<\/span><\/span><\/p>\n<p><span class=\"SS_ListLabel\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">7.<\/span><\/span><span class=\"SS_ListItemContent\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">That [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s conduct was a substantial factor in causing [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">]\u2019s harm.<\/span><\/span><\/p>\n<p><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">If you decide that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of plaintiff<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] has proved all of the above, [he\/she\/<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">nonbinary pronoun<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">\/it] does not have to prove that [<\/span><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">name of debtor<\/span><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\">] intended to defraud creditors. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\"><\/h2>\n<div id=\"TRNotes_n_1\">\n<p><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">New June 2006; Revised June 2016 <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/\">Crowdsource Lawyers<\/a><\/p>\n<p><a href=\"https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci\">https:\/\/crowdsourcelawyers.com\/judicial-council-california-civil-jury-instructions-caci<\/a><span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\"><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Directions for Use<\/h2>\n<div id=\"TRNotes_n_2\">\n<p>Under the Uniform Voidable Transactions Act (formerly the Uniform Fraudulent Transfer Act), a transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation. (Civ. Code, \u00a7\u20093439.05.)<\/p>\n<p>This instruction assumes the defendant is a transferee of the debtor. This instruction may be used along with\u00a0CACI No.\u20024202,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Constructive Fraudulent Transfer\u2014No Reasonably Equivalent Value Received\u2500Essential Factual Elements<\/span>, if it is alleged that the plaintiff became a creditor before the transfer was made or the obligation was incurred. Read the bracketed second sentence if the plaintiff is asserting causes of action for both actual and constructive fraud. Also give\u00a0CACI No. 4205,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">\u201cInsolvency\u201d Explained<\/span>, and\u00a0CACI No. 4206,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Presumption of Insolvency<\/span>.<\/p>\n<p>Courts have held that there is a right to a jury trial whenever the remedy sought is monetary relief, including even the return of a \u201cdeterminate sum of money.\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Wisden v. Superior Court<\/span>\u00a0(2004) 124 Cal.App.4th 750, 757 [21 Cal.Rptr.3d 523].) If the only remedy sought is the return of a particular nonmonetary asset, the action is an equitable action. However, even if a specific nonmonetary asset is involved, a conspiracy claim or an action against any party other than the transferee who possesses the asset (e.g., \u201cthe person for whose benefit the transfer was made\u201d (Civ. Code, \u00a7\u20093439.08(b)(1)(A)) necessarily would seek monetary relief and give rise to a right to a jury trial. <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<div class=\"SS_Note\">\n<h2 class=\"SS_HideShowSection SS_Expandable\">Sources and Authority<\/h2>\n<div id=\"TRNotes_n_3\">\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">Voidable Transaction Involving Insolvency.\u00a0Civil Code section 3439.05.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">When Value Is Given.\u00a0Civil Code section 3439.03.<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cThere are two forms of constructive fraud under the UFTA.\u00a0Civil Code section 3439.04\u00a0\u2026 provides that a transfer is fraudulent if the debtor did not receive reasonably equivalent consideration and either \u2018(1) Was engaged or about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or (2) Intended to incur, or believed or reasonably should have believed that he or she would incur, debts beyond his or her ability to pay as they became due.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Mejia v. Reed<\/span>\u00a0(2003) 31 Cal.4th 657, 669\u2013670 [3 Cal.Rptr.3d 390, 74 P.3d 166].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cEven without actual fraudulent intent, a transfer may be fraudulent as to present creditors if the debtor did not receive \u2018a reasonably equivalent value in exchange for the transfer\u2019 and \u2018the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">PGA West Residential Assn., Inc. v. Hulven Internat., Inc.<\/span>\u00a0(2017) 14 Cal.App.5th 156, 169 [221 Cal.Rptr.3d 353].)<\/span><\/p>\n<p><span class=\"SS_ListLabel\">\u2022<\/span><span class=\"SS_ListItemContent\">\u201cA well-established principle of the law of fraudulent transfers is, \u2018A transfer in fraud of creditors may be attacked only by one who is injured thereby. Mere intent to delay or defraud is not sufficient; injury to the creditor must be shown affirmatively. In other words, prejudice to the plaintiff is essential. It cannot be said that a creditor has been injured unless the transfer puts beyond [her] reach property [she] otherwise would be able to subject to the payment of [her] debt.\u2019\u2009\u201d (<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Mehrtash v. Mehrtash<\/span>\u00a0(2001) 93 Cal.App.4th 75, 80 [112 Cal.Rptr.2d 802], internal citations omitted.) <br class=\"avia-permanent-lb\" \/><br class=\"avia-permanent-lb\" \/><\/span><\/p>\n<hr \/>\n<\/div>\n<\/div>\n<h2 class=\"SS_Heading\"><span class=\"SS_bf\" data-housestyle=\"EMPHASIS_bf\"><span class=\"SS_ib\" data-housestyle=\"EMPHASIS_ib\">Secondary Sources<\/span><\/span><\/h2>\n<div>Gaab &amp; Reese, California Practice Guide: Civil Procedure Before Trial\u2014Claims &amp; Defenses, Ch. 5(III)-B,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Elements of Claim<\/span>, \u00b6\u20095:545 et seq. (The Rutter Group)<\/div>\n<div>17\u00a0California Forms of Pleading and Practice, Ch. 215,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Duress, Menace, Fraud, Undue Influence, and Mistake<\/span>, \u00a7\u00a7\u2009215.70[5],\u00a0215.111[2][c]\u00a0(Matthew Bender)<\/div>\n<div>23\u00a0California Forms of Pleading and Practice, Ch. 270,\u00a0<span class=\"SS_it\" data-housestyle=\"EMPHASIS_it\">Fraudulent Conveyances<\/span>, \u00a7\u00a7\u2009270.42,\u00a0270.191,\u00a0270.192\u00a0(Matthew Bender)<\/div>\n<div class=\"SS_Note\">\n<div id=\"TRNotes_n_3\"><\/div>\n<\/div>\n<\/div><\/section>\n<div  class='hr av-7izp5q-c7739a2a183dc4b8774d47b92e53f5d8 hr-default  avia-builder-el-6  el_after_av_textblock  el_before_av_textblock '><span class='hr-inner '><span class=\"hr-inner-style\"><\/span><\/span><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-5ygl9q-fbeedfba880f328a02c07f66eb015fcd\">\n#top .av_textblock_section.av-5ygl9q-fbeedfba880f328a02c07f66eb015fcd .avia_textblock{\nfont-size:22px;\n}\n<\/style>\n<section  class='av_textblock_section av-5ygl9q-fbeedfba880f328a02c07f66eb015fcd '   itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/CreativeWork\" ><div class='avia_textblock'  itemprop=\"text\" ><p><a href=\"https:\/\/crowdsourcelawyers.com\/\">CrowdSourceLawyers.com<\/a><\/p>\n<\/div><\/section>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-1886","page","type-page","status-publish","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CACI 4203 Constructive Fraudulent Transfer\u2014Insolvency\u2014Essential Factual Elements (Civ. 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