3rd Circ. Opens New Punitive Damages Doors For Creditors

Law360, New York (January 13, 2014, 1:59 PM EST) -- In Klein v. Weidner, 729 F.3d 280 (3d Cir. 2013), the Third Circuit Court of Appeals predicted that the Pennsylvania Supreme Court would allow a creditor to recover punitive damages for violations of the Pennsylvania Uniform Fraudulent Transfer Act.

The facts of the case arise from a domestic dispute between Douglas Weidner and Deborah Klein, former spouses. In 1999, the parties divorced in California, and Weidner was directed by a California court to make spousal and child support payments to Klein. Although Weidner made some child...
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