California Civil Jury Instructions (CACI) (2017)

4207. Affirmative Defense—Good Faith (Civ Code, § 343908(a), (f)(1))

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4207.Affirmative Defense—Good Faith (Civ. Code, § 3439.08(a),
(f)(1))
[Name of defendant] is not liable to [name of plaintiff] [on the claim for
actual fraud] if [name of defendant] proves both of the following:
[Use one of the following two sets of elements:]
[1. That [name of defendant] took the property from [name of debtor]
in good faith; and
2. That [he/she/it] took the property for a reasonably equivalent
value.]
[or]
[1. That [name of defendant] received the property from [name of
third party], who had taken the property from [name of debtor] in
good faith; and
2. That [name of third party] had taken the property for a
reasonably equivalent value.]
“Good faith” means that [name of defendant/third party] acted without
actual fraudulent intent and that [he/she/it] did not conspire with [name
of debtor] or otherwise actively participate in any fraudulent scheme. If
you decide that [name of debtor] had fraudulent intent and that [name of
defendant/third party] knew it, then you may consider [his/her/its]
knowledge in combination with other facts in deciding the question of
[name of defendant/third party]’s good faith.
New June 2006; Revised June 2016
Directions for Use
This instruction presents a defense that is available to a good-faith transferee for
value in cases involving allegations of actual fraud under the Uniform Voidable
Transactions Act (formerly the Uniform Fraudulent Transfer Act). (See Civ. Code,
§ 3439.08(a), (f)(1).) Include the bracketed language in the first sentence if the
plaintiff is bringing claims for both actual fraud and constructive fraud.
Sources and Authority
• Transaction Not Voidable as to Good-Faith Transferee for Reasonable Value.
Civil Code section 3439.08(a).
• Transferee’s Burden of Proving Good Faith and Reasonable Value. Civil Code
section 3439.08(f)(1).
• When Value is Given. Civil Code section 3439.03.
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• “The Legislative Committee comment to Civil Code section 3439.08,
subdivision (a), provides that ‘good faith,’ within the meaning of the provision,
‘means that the transferee acted without actual fraudulent intent and that he or
she did not collude with the debtor or otherwise actively participate in the
fraudulent scheme of the debtor. The transferee’s knowledge of the transferor’s
fraudulent intent may, in combination with other facts, be relevant on the issue
of the transferee’s good faith . . . .’ ” (Annod Corp. v. Hamilton & Samuels
(2002) 100 Cal.App.4th 1286, 1299 [123 Cal.Rptr.2d 924], internal citations
omitted.)
Secondary Sources
Ahart, California Practice Guide: Enforcing Judgments & Debts, Ch. 3-C,
Prejudgment Collection—Prelawsuit Considerations, ¶ 3:324. (The Rutter Group)
Wiseman & Reese, California Practice Guide: Civil Procedure Before Trial Claims
& Defenses, Ch. 5(III)-C, Fraud—Fraudulent Transfers—Particular Defenses,
¶ 5:580 et seq. (The Rutter Group)
23 California Forms of Pleading and Practice, Ch. 270, Fraudulent Conveyances,
§§ 270.35[2], 270.44[1], 270.47[2], [3] (Matthew Bender)
CACI No. 4207 UNIFORM FRAUDULENT TRANSACTIONS ACT
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