- 11 U.S.C.
Burtch v. Prudential Real Estate & Relocation Servs. (In re AE Liquidation Inc.)
Jul
17
2013
Ruling
Payments pursuant to quicker than usual payment schedule were not made in ordinary course of business and were avoidable.
Procedural posture
Chapter 7 trustee filed a complaint against creditor to avoid and recover preferential transfers under 11 U.S.C.S. § 547(b). The creditor argued that the trustee failed, as a matter of law, to establish a prima facie case. In the alternative, the creditor asserted two defenses under § 547(c)
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- 11 U.S.C.
US Bank Natl Assn v. Petro Commer. Servs. (In re Interstate Bakeries Corp.)
Jun
17
2013
Ruling
Ordinary course of business defense failed due to failure of testimony to provide objective evidence of payment practices in honey brokerage industry.
Procedural posture
Plaintiff trustee filed an adversary proceeding against defendants creditor seeking to recover a portion of $412,240 in allegedly preferential transfers that the debtor made to the creditor in the 90 days before the debtor's bankruptcy petition date. The matter proceeded to trial on the creditor's former 11 U.S.C.S. § 547(c)(2) and (c)(4) defenses.
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- 11 U.S.C.
Davis v. All Points Packaging & Distrib. (In re Quebeqcor World (USA) Inc.)
Apr
22
2013
Ruling
Payment made beyond pre-preference period average was not made in ordinary course of business and was avoidable.
Procedural posture
Litigation trustee under bankruptcy debtors' plan brought an adversary proceeding against defendant transferee of funds from the debtors alleging that a payment to the transferee was avoidable as a preferential transfer, and the transferee asserted that the payment was made in the ordinary course of business and was thus not avoidable under 11 U.S.C.S. § 547(c)(2). The trustee and the transferee cross-moved for summary judgment.
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- 11 U.S.C.
Rushton v. SMC Elec. Prods. (In re C.W. Mining Co.)
Mar
15
2013
Ruling
Preference period payment by debtor mining company to purchase electrical system was made in ordinary course of business and was not avoidable.
Procedural posture
Chapter 7 trustee's complaint sought relief pursuant to 11 U.S.C.S. §§ 547, 548 against defendants. Defendants moved for summary judgment.
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- 11 U.S.C.
Goodman v. Triple C Marine Salvage Inc. (In re Gulf Fleet Holdings Inc.)
Mar
12
2013
Ruling
Preference period payments for one time transaction were not made in ordinary course of business and could be avoided.
Procedural posture
In a preference action brought by chapter 11 trustee under 11 U.S.C.S. § 547 against defendant supplier, the supplier raised an ordinary course defense under § 547(c)(2).
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:
- 11 U.S.C.
In re Prevalence Health LLC
Nov
07
2012
Ruling
Transfer to debtor's president and chief operating officer avoided as preferential given inability to establish ordinary course of business exception.
Procedural posture
The chapter 11 trustee filed an action against defendant the president and chief operating officer of the debtor, to set aside a payment as a preference pursuant to 11 U.S.C.S. § 547. Defendant argued that the transfer was not a preference because it was made in the ordinary course of the debtor's business under § 547(c)(2). Both parties filed motions for summary judgment.
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- 11 U.S.C.
Goldstein v. Starnet Capital Group LLC
Oct
24
2012
Ruling
Payments made in ordinary course of business were not avoidable.
Procedural posture
The chapter 7 trustee brought an adversary proceeding to set aside the $175,000 in multiple pre-petition transfers as fraudulent transfers pursuant to 11 U.S.C.S. §§ 544, 548 and 550. Alternatively, the trustee sought to avoid the final two of the transfers as preferences under 11 U.S.C.S. §§ 547(b) and 550, as made to the transferee within 90 days of the petition date.
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- 11 U.S.C.
Moglia v. Blockson & Co. (In re Wildwood Indus.)
Oct
24
2012
Ruling
Transfers avoided to the extent not made in exchange for new value given inability of creditor to establish ordinary course of business exception.
Procedural posture
Chapter 7 trustee sued creditor pursuant to 11 U.S.C.S. § 547, which allowed a trustee to avoid certain preferential transfers made by a debtor prior to bankruptcy, to recover over $30,000 in alleged preferential transfers made to the creditor by debtor. The matter was before the court for judgment following a trial.
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- 11 U.S.C.
Sparkman v. Martin Marietta Materials Inc. (In re Mainline Contr. Inc.)
Oct
23
2012
Ruling
Phone calls and emails prior to payments did not remove transfers from ordinary course of business exception.
Procedural posture
Chapter 7 trustee filed an adversary proceeding against defendant vendor, seeking a determination, inter alia, that payments a contracting company ("debtor") made to the vendor within the 90-day period that preceded the date the debtor declared bankruptcy were preferential transfers that could be avoided under 11 U.S.C.S. § 547. The parties filed cross-motions for summary judgment.
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- 11 U.S.C.
Siegel v. Russell Ville Steel Co. (In re Circuit City Stores Inc.)
Jun
01
2012
Ruling
Preference period payments to supplier at different days-to-pay average than payments prior to preference period were not made in ordinary course of business and could be avoided.
Procedural posture
Plaintiff, the trustee for a liquidating trust, brought an adversary proceeding against defendant supplier to avoid and recover pursuant to 11 U.S.C.S. § 547 several transfers made by debtor and its affiliated debtors, in the ninety days immediately preceding the petition date.
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