Berger v. Varum
Annotate this CaseBerger hired the Varum defendants to design and provide technical support for constructing a building in San Francisco. Significant problems with the design emerged during demolition and construction so that Berger had to purchase an adjacent property. Berger obtained a $2.7 million judgment against the Varum defendants. The Varum defendants appealed but did not post a bond staying enforcement. While that appeal was pending, Berger sued others, alleging they received distributions of money, property, interests in real estate, and other items of value from the Varum defendants without paying adequate consideration. The Varum defendants paid the judgment several months later. Berger acknowledged satisfaction of the judgment and filed a second amended complaint modifying the causes of action in light of the satisfaction of judgment, asserting fraudulent conveyance and conspiracy to defraud. The trial court dismissed the suit. The court of appeal reversed. The common law fraudulent transfer claim gave rise to consequential and punitive damages. Berger alleges the defendants were aware the Varum defendants planned to fraudulently transfer assets to hinder, delay, or defraud Berger; “agreed and intended that the fraudulent transfers be committed”; and that Berger was harmed as a result of such conduct. These allegations are sufficient to state a cause of action for conspiracy.
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