Macris & Associates v. Neways, Inc.

Is a fraudulent transfer cause of action barred by res judicata when the transfer arose after the first case was filed?


The Utah Supreme Court held that Image's attempt at reincorporating as a new entity was a fraudulent transfer and because the new entity was established during the pendency of the previous litigation and could not be barred by res judicata. The Court did hold that Macris could not continue with his claim against Neways seeking to continue to collect damages from his previous claim. The cessation of doing business as Images cut off Macris' previous claim from accumulating additional damages.

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