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Gottlieb v. State Compensation Ins. Fund of Cal. (In re Intl Philanthropic Hosp. Found.)

Gottlieb v. State Compensation Ins. Fund of Cal. (In re Intl Philanthropic Hosp. Found.)

Ruling
Trustee could not avoid a payment to a state workers'compensation insurance fun since the postpetition transfer was approved by a court order, one that the truste e had requested.
Procedural posture

Debtor operated a 155-bed hospital and was in chapter 11. The chapter 11 trustee found that the debtor-in-possession had cut a check to defendant, the state compensation insurance fund, for $172.860.92 for workers'compensation insurance. The case was converted to a chapter 7. The trustee moved for partial summary adjudication, seeking to recover the funds from defendant on the basis that it was an avoidable transfer under 11 U.S.C. § 549.

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opinion summary, case decided on January 04, 2006 , LexisNexis #0306-028