CACI No. 4203

Factual Elements (Civ. Code, § 3439.05)

[Name of plaintiff] claims [he/she/ nonbinary pronoun/it] was harmed

because [name of debtor] [transferred property/incurred an obligation] to

[name of defendant] and was unable to pay [name of plaintiff] money that

was owed. [This is called “constructive fraud.”] To establish this claim

against [name of defendant], [name of plaintiff] must prove all of the

following:

1. That [name of plaintiff] has a right to payment from [name of

debtor] for [insert amount of claim];

2. That [name of debtor] [transferred property/incurred an

obligation] to [name of defendant];

3. That [name of debtor] did not receive a reasonably equivalent

value in exchange for the [transfer/obligation];

4. That [name of plaintiff]’s right to payment from [name of debtor]

arose before [name of debtor] [transferred property/incurred an

obligation];

5. That [name of debtor] was insolvent at that time or became

insolvent as a result of the transfer or obligation;

6. That [name of plaintiff] was harmed; and

7. That [name of debtor]’s conduct was a substantial factor in

causing [name of plaintiff]’s harm.

If you decide that [name of plaintiff] has proved all of the above, [he/she/

nonbinary pronoun/it] does not have to prove that [name of debtor]

intended to defraud creditors.

New June 2006; Revised June 2016