Rupp v. Moffo, 2015 UT 71

Angie Moffo lived rent-free in brother‑in‑law Doug Rich’s house for eight years after moving in 2003; she never paid rent.
Rich obtained a mortgage in 2006 that included an assignment of rents to Bayrock Mortgage.
By 2009 Rich became insolvent, Bayrock served notice of default (triggering the rent assignment), and by 2011 the mortgage exceeded the home’s fair market value.
Rich filed Chapter 7; trustee Stephen Rupp sued Moffo under Utah’s Uniform Fraudulent Transfer Act (UFTA) seeking back rent ($1,300/mo) as a fraudulent transfer.
The district court granted summary judgment for Rupp and entered a $34,200 judgment against Moffo.
On appeal the Utah Supreme Court held Rupp has statutory standing as a creditor (via trustee rights) but that no cognizable “asset” was transferred because the property (and rents) were fully encumbered by Bayrock’s valid lien; judgment against Moffo was vacated and summary judgment ordered for Moffo.

Issue	Plaintiff's Argument (Rupp)	Defendant's Argument (Moffo)	Held
Whether the bankruptcy trustee has statutory standing under the UFTA as a “creditor”	Trustee status under 11 U.S.C. § 544(a) gives Rupp the rights and powers of a creditor and thus standing to sue under the UFTA	Only parties with an actual interest in the transferred property (e.g., the secured creditor Bayrock) have standing; trustee lacks statutory standing to assert claims that belong to a particular creditor	Held: Rupp has statutory standing — a “creditor” under the UFTA is anyone with a right to payment, and a trustee has the rights of a creditor under the Bankruptcy Code
Whether Rich’s allowance of Moffo’s rent‑free occupancy constituted a transfer of an “asset” under the UFTA	The possessory interest or rents constitute an asset transferable to Moffo despite the mortgage encumbrance	The UFTA defines “asset” to exclude property to the extent it is encumbered by a valid lien; here the house and rents were fully encumbered by Bayrock, so no asset was transferred	Held: No asset was transferred. Fully encumbered property (and assigned rents) are excluded from the UFTA; summary judgment for Moffo required

Zuniga v. Evans, 48 P.2d 513 (Utah 1935) (discussed historical fraud/asset definitions under prior Uniform Fraudulent Conveyances Act)
St. Paul Fire & Marine Ins. Co. v. PepsiCo, Inc., 884 F.2d 688 (2d Cir. 1989) (on trustee/creditor standing distinctions referenced by concurrence)
ASARCO LLC v. Ams. Mining Corp., 396 B.R. 278 (S.D. Tex. 2008) (bankruptcy‑trustee standing analysis on required debtor interest in transferred property)
City of L.A. v. Lyons, 461 U.S. 95 (U.S. 1983) (standing requires injury, causation, and redressability — cited by concurrence)
Linda R.S. v. Richard D., 410 U.S. 614 (U.S. 1973) (standing principles limiting private actions cited by concurrence)