Stein v. Brown, 480 N.E.2d 1121 (Ohio 1985). · Go Syfert
Stein v. Brown, 480 N.E.2d 1121 (Ohio 1985). Cases Citing This Book View Copy Cite
161 citation events (103 in the last 25 years) across 15 distinct courts.
Strongest positive: Steve Gregory v. Brandon Hardgrove (ky, 2018-12-13)
Treatment trajectory · 1987 → 2026 · click a year to view as-of
1987 2006 2026
Top citers, strongest first. 22 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) Steve Gregory v. Brandon Hardgrove
Ky. · 2018 · quote attribution · 1 verbatim quote · confidence high
an individual possessing a cause of action in tort is a 'creditor'. . . and has the right to question an alleged fraudulent conveyance
examined Cited as authority (verbatim quote) Central States Southeast And Southwest Areas Pension Fund v. Stephens (2×)
N.D. Ill. · 2018 · signal: see · quote attribution · 2 verbatim quotes · confidence high
it is rudimentary that the issue concerning fraudulent intent is to be determined in view of the facts and circumstances of each case.
examined Cited as authority (verbatim quote) Daneman v. Stanley (In Re Stanley) (2×) also: Cited as authority (quoted)
Bankr. S.D. Ohio · 2008 · signal: see also · quote attribution · 2 verbatim quotes · confidence high
it is rudimentary that the issue concerning fraudulent intent is to be determined in view of the facts and circumstances of each case. the burden of proof in an action to set aside a fraudulent conveyance must be affirmatively satisfied by the complainant.
examined Cited as authority (quoted) Gregory v. Hardgrove (2×)
Mo. Ct. App. · 2018 · quote attribution · 2 verbatim quotes · confidence low
an individual possessing a cause of action in tort is a 'creditor' ... and has the right to question an alleged fraudulent conveyance
cited Cited as authority (rule) Keystone Drill Services, Inc. v. Davey Kent, Inc.
N.D. Ohio · 2024 · confidence medium
Sys., 2008 WL 11380232 , at *8 (citing Stein v. Brown, 18 Ohio St. 3d 305, 308-09 (1985)).
discussed Cited as authority (rule) Vancrest Mgt. Corp. v. Mullenhour
Ohio Ct. App. · 2019 · confidence medium
“While the creditor seeking to set aside a transfer as fraudulent has the ultimate burden of proving, by clear and convincing evidence, the debtor’s intent pursuant to R.C. 1336.04(A)(1), Ohio has recognized that proof of actual intent will often be impossible to procure.” Blood v. Nofzinger, 162 Ohio App.3d 545 , 2005-Ohio- 3859, ¶ 36 (6th Dist.), citing Wagner v. Galipo, 97 Ohio App.3d 302, 309 (8th Dist.1994), citing Stein v. Brown, 18 Ohio St.3d 305, 308 (1985).
discussed Cited as authority (rule) In re Estate of Brate
Ohio Ct. App. · 2019 · confidence medium
Stein v. Brown, 18 Ohio St.3d 305, 308 (1985). {¶ 31} The probate court found that Sherry's transfer of the property was made with the intent to defraud Nolan, the only other beneficiary of the estate, and Attorney Sharts, a creditor of the estate.
discussed Cited as authority (rule) Patrick Finn and Lighthouse Management Group, Inc., Appellants/Cross-Respondents v. Alliance Bank, Respondent/Cross-Appellant, Home Federal Bank, Respondent/Cross-Appellant, KleinBank, Respondent/Cross-Appellant, Merchant's Bank, Respondent/Cross-Appellant, M&I Marshall & Ilsley Bank, Respondent/Cross-Appellant, American Bank of St. Paul
Minn. · 2015 · confidence medium
Credit Ass’n of Midlands v. Shirley, 485 N.W.2d 469, 472-73 (Iowa 1992); Myers Dry Goods Co. v. Webb, 181 S.W.2d 56, 58 (Ky. 1944); Stein v. Brown, 480 N.E.2d 1121, 1124 (Ohio 1985); see also Citizens State Bank, 849 N.W.2d at 65 (noting that whether a transfer is made with fraudulent intent is ordinarily a question of fact). 2.
discussed Cited as authority (rule) Finn v. Alliance Bank
Minn. · 2015 · confidence medium
Credit Ass’n of Midlands v. Shirley, 485 N.W.2d 469, 472-73 (Iowa 1992); Myers Dry Goods Co. v. Webb, 297 Ky. 696 , 181 S.W.2d 56, 58 (1944); Stein v. Brown, 18 Ohio St.3d 305 , 480 N.E.2d 1121, 1124 (1985); see also Citizens State Bank, 849 N.W.2d at 65 (noting that whether a transfer is made with fraudulent intent is ordinarily a question of fact). 2.
discussed Cited as authority (rule) Witschey, Witschey & Firestine Co., L.P.A. v. Daniele
Ohio Ct. App. · 2013 · confidence medium
Franklin No. 09AP-646, 2010-Ohio- 485, ¶ 29. {¶7} “The burden of proof in an action to set aside a fraudulent conveyance must be affirmatively satisfied by the complainant.” Stein v. Brown, 18 Ohio St.3d 305, 308 (1985).
discussed Cited as authority (rule) Walters v. Walters (2×)
Ohio Ct. App. · 2013 · confidence medium
Stein, 18 Ohio St.3d at 306, 308 . {¶35} The Supreme Court explained that the prior general rule was that the beneficiary’s motives for renouncing an interest in an estate are immaterial and do not affect the validity of the renunciation.
discussed Cited as authority (rule) Rieser v. Hayslip (In Re Canyon Systems Corp.)
Bankr. S.D. Ohio · 2006 · confidence medium
United States v. Rosen, 130 F.3d 5, 9 (1st Cir.1997); United States v. Coppola, 85 F.3d 1015, 1021-22 (2d Cir.1996); Gabor, 280 B.R. at 157 (“Fraudulent intent is rarely proved by direct evidence.”); Stein v. Brown, 18 Ohio St.3d 305 , 480 N.E.2d 1121, 1124 (1985).
discussed Cited as authority (rule) United States v. Labine (2×)
N.D. Ohio · 1999 · confidence medium
Stein v. Brown, 18 Ohio St.3d 305, 308 , 480 N.E.2d 1121, 1124 (1985). i. The Conveyance Element one is clearly fulfilled because the transfer of the residence to the trust constitutes a conveyance.
discussed Cited as authority (rule) Miller v. Mauzey
Mo. Ct. App. · 1998 · confidence medium
In addition, other states have held that an expectancy interest may be assigned for consideration, Von Bulow v. Von Bulow, 634 F.Supp. 1284, 1308 (S.D.N.Y.1986); Bradley Lumber Co. v. Burbridge, 213 Ark. 165 , 210 S.W.2d 284, 288 (1948); McAdams v. Bailey, 169 Ind. 518 , 82 N.E. 1057, 1059 (1907); Clendening v. Wyatt, 54 Kan. 523 , 38 P. 792 , 793 (1895), and that a decision by a person to renounce an inheritance following the death of the testator can be set aside as a fraudulent transfer, Stein v. Brown, 18 Ohio St.3d 305 , 480 N.E.2d 1121, 1123 (1985); In re Estate of Reed, 566 P.2d 587, 58…
discussed Cited as authority (rule) In Re Taubman
Bankr. S.D. Ohio · 1993 · confidence medium
Consequently, “[d]ue to the difficulty in finding direct proof of fraud, courts of this state began long ago to look to inferences from the circumstances surrounding the transaction and the relationship of the parties involved.” Stein v. Brown, 18 Ohio St.3d 305 , 480 N.E.2d 1121, 1124 (1985), Accord Berman, 884 F.2d at 922 . [C]ertain traditionally designated “badges” or indicia of fraud, circumstances which usually or frequently attend a conveyance designed to hinder, delay, or defraud creditors, in concert with other suspicious circumstances, have generally been held to be sufficien…
cited Cited as authority (rule) United States v. Lawrence W. Berman, Marilyn Berman, and Forex Corporation
6th Cir. · 1989 · confidence medium
Stein v. Brown, 18 Ohio St.3d 305, 308 , 480 N.E.2d 1121, 1124 (1985); In re Maston, 44 B.R. 880, 882 (Bankr.S.D.Ohio 1984); In re Poole, 15 B.R. 422, 431-32 (Bankr.N.D.Ohio 1981).
cited Cited "see" Cincinnati Development III v. Cincinnati Terrace Plaza, LLC
6th Cir. · 2023 · signal: see · confidence high
See Stein v. Brown, 480 N.E.2d 1121 , 1123–24 (Ohio 1985).
examined Cited "see" Tricarichi v. Comm'r (3×)
Tax Ct. · 2015 · signal: see · confidence high
See Stein v. Brown , 18 Ohio St. 3d 305 , 18 Ohio B. 352 , 480 N.E.2d 1121 (Ohio 1985) (discussing other States' treatment of the Uniform Fraudulent Conveyance Act (UFCA), the UFTA's predecessor); Ohio Ins.
discussed Cited "see" Pheasant v. Zaremba (2×)
N.D. Ohio · 2008 · signal: see · confidence high
See Stein v. Brown, 18 Ohio St.3d 305, 308 , 480 N.E.2d 1121 (1985).
cited Cited "see" Colonial Guild Ltd. v. Pruitt, Unpublished Decision (4-4-2001)
Ohio Ct. App. · 2001 · signal: see · confidence high
See Stein v. Brown (1985), 18 Ohio St.3d 305 , 307 .
examined Cited "see, e.g." United States v. Long (8×)
N.D. Ohio · 2014 · signal: see also · confidence low
Blood, 162 Ohio App.3d at 557-558 , 834 N.E.2d at 367-368 ; see also Stein v. Brown, 18 Ohio St.3d 305, 308 , 480 N.E.2d 1121, 1124 (1985).
discussed Cited "see, e.g." Lesick v. Medgroup Management, Unpublished Decision (10-29-1999) (2×)
Ohio Ct. App. · 1999 · signal: see also · confidence low
See R.C. 1336.04 (A)(1); see, also, Stein v. Brown (1985), 18 Ohio St.3d 305 , 480 N.E.2d 1121 ; Crocker v. Hood (1996), 113 Ohio App.3d 478 , 681 N.E.2d 460 ; Abood , supra ; Fesman v. Berger (Dec. 6, 1995), Hamilton App. No. C-940400, unreported; K-Swiss, Inc. v. Cowens Sports Center, Inc. (Nov. 8, 1995), Greene App. No. 95-CA-48, unreported.
Retrieving the full opinion text from the archive…
Stein, Co-Exrs.
v.
Brown Dudock, Appellee Jones, Admx.
No. 84-1798.
Ohio Supreme Court.
Jul 24, 1985.
480 N.E.2d 1121
Ernest R. Stein, for co-executors., Jerry Montgomery, for appellee Dudock., Nukes & Perantinides Co., L.P.A., Paul G. Perantinides and Linda T. Teodosio, for appellant.
Brown, Celebrezze, Douglas, Holmes, Locher, Sweeney, Wright.
Cited by 61 opinions  |  Published
2 passages pin-cited by 2 cases
Pinpoint authority: bottom 74%
Citer courts: Missouri Court of Appeals (2) · S.D. Ohio (1)
Holmes, J.

This appeal presents a case of first impression. The issue is whether appellee, as a will beneficiary, can effectively disclaim his inheritance pursuant to R.C. 1339.60 under the facts herein. The appellate court held that the disclaimer was valid. For the reasons which follow, we disagree.

[*307] The ambit of authority to disclaim a testamentary succession to real and personal property is contained -within R.C. 1339.60(B). In relation to this appeal, subsection (1) provides:

“A disclaimant, other than a fiduciary under an instrument who is not authorized by the instrument to disclaim the interest of a beneficiary, may disclaim, in whole or in part, the succession to any property by executing, delivering, filing, and recording a written disclaimer instrument in the manner provided in this section.”

Generally, the motives of the beneficiary which prompt a renunciation of a devise or bequest are immaterial and do not affect the validity of the renunciation. 80 American Jurisprudence 2d (1975) 653-654, Wills, Section 1597; Annotation (1964), 93 A.L.R. 2d 8, 64, Section 32[b]. The only Ohio case on point establishes that such motives are immaterial in the absence of fraud or collusion. Ohio Natl. Bank v. Miller (App. 1943), 41 Ohio Law Abs. 250, 253 [25 O.O.2d 465]. However, there is a divergency of case law from other jurisdictions concerning .the issue of whether a beneficiary has a right to renounce despite any claims of his creditors.

Prior to the promulgation of the Uniform Fraudulent Conveyance Act, most jurisdictions held to the view that the beneficiary’s right to renounce his testamentary interest was absolute even against creditors. This rule was derived from the theory that a person could not be compelled to take property against his will, and the legal fiction that the renunciation relates back to the time the bequest was made by the testator. See, e.g., People v. Flanagin (1928), 331 Ill. 203, 162 N.E. 848; Schoonover v. Osborne (1922), 193 Iowa 474, 187 N.W. 20; Bradford v. Calhoun (1908), 120 Tenn. 53, 109 S.W. 502.

With their respective adoption of fraudulent conveyance standards, an ever-increasing number of states have ruled that a renunciation is a transfer of property in that it passes title of the beneficiary’s share of the estate to another person, and such renunciation when done to defraud a creditor is susceptible to attack by the creditor. This trend in the law followed the lead of Justice Traynor of the California Supreme Court who found the right to renuncíate closely analogous to a general power of appointment and, therefore, subject to the scrutiny of the fraudulent conveyance statutes. In re Kalt’s Estate (1940), 16 Cal. 2d 807, 108 P. 2d 401. See, e.g., United States v. Johnston (W.D. Ark. 1965), 245 F. Supp. 433; Jahner v. Jacob (N.D. 1977), 252 N.W. 2d 1; Montana Natl. Bank v. Michels (Mont. 1981), 631 P. 2d 1260; In re Estate of Reed (Wyo. 1977), 566 P. 2d 587. Today, we join this trend because the power to vest title in another is the equivalent of a transfer of that property.

The Ohio General Assembly adopted its version of the Uniform Fraudulent Conveyance Act in 1961. R.C. 1336.01 et seq. Appellant’s cause of action is premised on R.C. 1336.07 which states:

“Every conveyance made and every obligation incurred with actual intent, as distinguished from intent presumed in law, to hinder, delay, or[*308] defraud either present or future creditors, is fraudulent as to both present or future creditors.”[1]

It must initially be determined whether appellant is a “creditor” within the statutory provision. “Creditor” is defined in R.C. 1336.01(C) as “a person having any claim, whether matured or unmatured, liquidated or unliquidated, absolute, fixed, or contingent.” We find that appellant, as administratrix of her son’s estate, satisfies the definition.

An individual possessing a cause of action in tort is a “creditor” within the meaning of R.C. 1336.01(C) and has the right to question an alleged fraudulent conveyance. Foster v. Gibson (1964), 120 Ohio App. 235. See 37 American Jurisprudence 2d (1968) 818-819, Fraudulent Conveyances, Section 145; Annotation (1960), 73 A.L.R. 2d 749. Cf. Pennell v. Walker (1941), 68 Ohio App. 533 [23 O.O. 263]. This conclusion is clearly warranted by the language of the statute which includes unmatured, unliquidated, or contingent claims. Thus, a tort claimant becomes a creditor within the meaning of R.C. 1336.01(C) at the moment in which the cause of action accrues.

R.C. 1336.07 provides that every conveyance made with actual intent to hinder, delay, or defraud a present or future creditor is fraudulent. The plain meaning of the statute dictates that a conveyance is illegal not only if made with the intent to defraud a creditor, but it is also unlawful if made with the intent to hinder or delay such creditor. Shapiro v. Wilgus (1932), 287 U.S. 348.

It is rudimentary that the issue concerning fraudulent intent is to be determined in view of the facts and circumstances of each case. The burden of proof in an action to set aside a fraudulent conveyance must be affirmatively satisfied by the complainant. 37 American Jurisprudence 2d (1968) 872-873, Fraudulent Conveyances, Section 216; 51 Ohio Jurisprudence 3d (1984) 96-98, Fraud and Deceit, Section 236. Due to the difficulty in finding direct proof of fraud, courts of this state began long ago to look to inferences from the circumstances surrounding the transaction[*309] and the relationship of the parties involved. Gleason v. Bell (1915), 91 Ohio St. 268; 51 Ohio Jurisprudence 3d (1984) 103-104, Fraud and Deceit, Sections 240 and 241.

In the instant case it is clear that if appellee’s disclaimer is allowed, his portion of the estate will pass to his children under the anti-lapse statute, or to his sister pursuant to the language contained in the testamentary document. We believe this fact coupled with the other circumstances of the case clearly establishes actual intent to defraud on the part of appellee. Just four days after the accident, and on the very day that appellant’s wrongful death action accrued, appellee voluntarily conveyed to his wife his entire interest in their residential property for the sum of one dollar. This amount of grossly inadequate consideration from one spouse to another must be viewed with great suspicion. In fact, this court has traditionally held that this type of conveyance is prima facie fraudulent as it relates to creditors. See Fowler v. Trebein (1866), 16 Ohio St. 493, and its progeny. See, also, Ursak v. Sivanick (1937), 56 Ohio App. 434 [9 O.O. 217], In a further attempt to divest his future assets, appellee sought to renounce his inheritance with full knowledge that the proceeds would pass to close family members. When viewed with the totality of the circumstances herein, we simply cannot condone such action.

Therefore, we hold that where a will beneficiary seeks to disclaim an inheritance pursuant to R.C. 1339.60(B) with the actual intent to defraud a present or future creditor, the renunciation is a fraudulent conveyance under R.C. 1336.07.

Accordingly, appellee’s disclaimer has no legal effect and the judgment of the court of appeals is reversed on the issue presented to this court.

Judgment reversed.

Celebrezze, C.J., Sweeney, Locher, C. Brown, Douglas and Wright, JJ., concur.
1

Two related provisions deserve additional citation because each encompasses the notion of constructive fraud in conveyance-type cases.

R.C. 1336.04 provides:

“Every conveyance made and every obligation incurred by a person who is or will be thereby rendered insolvent is fraudulent as to creditors without regard to his actual intent if the conveyance is made or the obligation is incurred without a fair consideration.”
R.C. 1336.06 also states:
“Every conveyance made and every obligation incurred without fair consideration, when the person making the conveyance or entering into the obligation intends or believes that he will incur debts beyond his ability to pay as they mature, is fraudulent as to both present'and future creditors.”

The former requires evidence of the transferor’s insolvency which was lacking in the record herein. Therefore, we are precluded from utilizing the provision. However, while our analysis might have hinged on the constructive fraud theory within the latter provision, we believe the facts of this case are sufficient to proceed under the actual fraud theory of R.C. 1336.07.