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Gresk v. Adams Removal & Hauling Inc. (In re American Restoration Corp.)

Gresk v. Adams Removal & Hauling Inc. (In re American Restoration Corp.)

Ruling
Letter outlining "net 30 days" invoicing treatment did not support ordinary course of business defense to avoidance where invoices clearly stated "due on receipt."
Procedural posture

Chapter 7 Trustee filed an adversary proceeding against defendant creditor seeking to avoid certain transfers from the debtor as preferential under 11 U.S.C.S. § 547(b). The only issue was whether the transfers were excepted from avoidance pursuant to the "ordinary course" defense under 11 U.S.C.S. § 547(c)(2) and in particular, whether the transfers were made "according to ordinary business terms" within the meaning of § 547(c)(2)(C).

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Commercial opinion summary, case decided on April 28, 2008 , LexisNexis #0608-138