On appeal from the Superior Court of New Jersey, Law Division, Hudson County, Docket No. L-2627-07.
NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION
Before Judges Lihotz and Ashrafi.
In this case brought under the Uniform Fraudulent Transfer Act ("the Act"), N.J.S.A. 25:2-20 to -33, plaintiffs John Guido and All American Waste Service Inc. appeal from an order of February 13, 2009, dismissing their complaint with prejudice. The trial court concluded that they filed their complaint beyond the statute of limitations established by N.J.S.A. 25:2-31. We reverse.
The Act allows causes of action for fraudulent transfers of property that occurred both before and after an unpaid debt was incurred. In relevant part, N.J.S.A. 25:2-25 states:
Transfers Fraudulent As To Present And Future Creditors
A transfer made... by a debtor is fraudulent as to a creditor, whether the creditor's claim arose before or after the transfer was made... if the debtor made the transfer...
a. With actual intent to hinder, delay, or defraud any creditor of the debtor....
In this case, plaintiffs' claim against defendants arose after the transfer of property alleged to have been made fraudulently to avoid payment.
The applicable statute of limitations is contained in N.J.S.A. 25:2-31, which states in relevant part:
Extinguishment Of Cause Of Action
A cause of action with respect to a fraudulent transfer... under this article is extinguished unless action is brought:
a. Under subsection a. of R.S. 25:2-25, within four years after the transfer was made... or, if later, within one year after the ...