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The appeal is dismissed.
The costs of appeal are assessed against the defendant.
Reasons
The grounds of appeal are examined.
1. As to the ground of appeal No. 1, where an obligor’s act of reducing liability property, thereby inducing or deepening the shortage of common security for general creditors, whether the act constitutes a fraudulent act subject to revocation should be determined by comprehensively taking into account the following factors: (a) the weight of the obligor’s entire responsible property in the context of a fraudulent act; (b) the degree of insolvency; (c) the justification of the economic purpose of a juristic act; (d) the reasonableness of the pertinent act, which is the means of realization; (e) the reasonableness of the pertinent act; (e) the degree of perception of the parties to the shortage of common security, such as the obligor’s and the beneficiary’s collusion
In addition, the act of a debtor in excess of his/her obligation to transfer claims and other active properties that are not the original purpose of the obligation with respect to the performance of the obligation only to some of the multiple creditors, may, in principle, constitute fraudulent act in relation to other creditors, contrary to the case where the debtor performs the obligation in accordance with the content of the obligation
However, in such a case, the establishment of a fraudulent act may be denied in a case where, in light of the general standard of determination as seen above, such a fraudulent act cannot be deemed ultimately an act detrimental to general creditors.
(see Supreme Court Decision 2012Da110521, Jan. 16, 2014). The lower court acknowledged the facts as indicated in its reasoning by comprehensively taking account of the adopted evidence. In so doing, it is deemed that the transfer by the Nonparty Company to the Defendant, one of the creditors, who was over obligations at the time of August 10, 2012, constitutes a fraudulent act against the Plaintiff, and the transfer of the claim against Shee Construction constitutes a fraudulent act against the Plaintiff by Nonparty Company.