Plaintiff sued defendants, who operated an entity that sold plaintiff’s vehicle-service contracts. Although defendants agreed to pay a share of refunds for cancelled contracts, they failed to do so. Plaintiff alleged that defendants made transfers to themselves to render their business insolvent. The district court dismissed plaintiff’s Uniform Fraudulent Transfer Act claim, concluding that plaintiff lacked Article III standing because there had been no judgment that defendants breached any agreements with plaintiff.
Where plaintiff alleged that defendants failed to meet their obligations to pay a share of refunds and used advanced funds for specific purposes, the lack of a judgment that defendants had breached contracts with plaintiff was not fatal to plaintiff’s standing.
Judgment is reversed and remanded.
Enterprise Financial Group Inc. v. Podhorn (MLW No. 73575/Case No. 18-1591 – 5 pages) (U.S. Court of Appeals, 8th Circuit, Colloton, J.) Appealed from U.S. District Court, Eastern District of Missouri, Autrey, J. (Peter Michael Jung, of Dallas, TX for appellant) (Andrew Rain Kasnetz, of Clayton for appellees; Zachary S. Merkle, of Saint Louis, Justin David Perryman, of Saint Louis on brief)