Justice Allan Weiss
Chapin Home for the Aging sought to recover nearly $290,000 for care provided to the now-deceased Lillian Heather. Defendants grandchildren cross-moved for summary judgment dismissing the claims against them. Chapin alleged claims for fraudulent conveyance, and unjust enrichment. Defendants claimed annuities were purchased by Heather on advice of counsel as part of her estate plan, and were intended as gifts to the grandchildren. They also argued the fact the annuities were annuitized did not render Heather insolvent, nor when funds were withdrawn by Goldman from a joint checking account. Goldman claimed she used Heather’s funds to pay Chapin, and decedent paid over $100,000 to Chapin for her care. The court found Chapin’s "bald claims" conveyances were made with an intent to defraud Medicaid was unsupported, noting the Department of Health Commissioner did not deem the conveyances fraudulent. Yet, it also found an element of insolvency was presumed as certain conveyances were made without fair consideration, thus Chapin’s motion for summary judgment on claims for fraud and a violation of the Debtor and Creditor Law were granted, entitling it to $297,893.95.
