§ 548(a)

TSIC Inc. v. Thalheimer (In re TSIC Inc.)

Debtor filed an adversary proceeding seeking to avoid a $ 6,055,000 severance payment made to a former director and chief executive officer (CEO). Debtor filed a motion for summary judgment requesting the court find that the payment was an avoidable fraudulent transfer pursuant to 11 U.S.C.S. § 548(a)(1)(B)(i), (ii)(IV). The CEO filed a cross-motion for summary judgment.
Ruling: 
Severance payment to former director and CEO during two-year lookback period was a transfer for less than equivalent value and avoidable.
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Commercial case opionion summary, case decided on April 28,2010, LexisNexis #0710-021

Pryor v. Fisher (In re Dimino)

Plaintiff, the chapter 7 trustee, brought an adversary proceeding seeking to recover two pre-petition transfers from the debtor to two defendants, transferees of funds in the aggregate amount of $ 55,000, transferred in satisfaction of mechanic's liens the transferees filed against the debtor's real property, which the trustee asserted were legally deficient.
Ruling: 
Transfers in satisfaction of mechanics' liens were made for full consideration and were not avoidable.
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Consumer case opionion summary, case decided on April 21,2010, LexisNexis #0710-055

Uecker & Assocs. v. Tenet Healthsystem Hosps. Inc. (In re West Contra Costa Healthcare Dist.)

Plaintiff, a trustee of a trust for the benefit of creditors under a confirmed plan, filed a complaint pursuant to 11 U.S.C.S. § 548(a)(1)(B) against defendant creditor to avoid and recover certain lease payments made prepetition by a chapter 9 debtor to the creditor and to object to the creditor's claim unless the payments were repaid. The creditor filed a motion for summary judgment, and the trustee filed a motion for partial summary judgment.
Ruling: 
Sublease payments by chapter 9 debtor were not avoidable absent proof of insolvency at time sublease was entered.
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Commercial case opionion summary, case decided on March 26,2010, LexisNexis #0610-127

Nisselson v. Empyrean Inv. Fund LP (In re MarketXT Holdings Corp.)

Trustee brought an adversary proceeding against defendant investment fund alleging that a transfer of the proceeds of a sale of stock held by a bankruptcy debtor to the fund constituted an intentionally and constructively fraudulent transfer under bankruptcy law and state law.
Ruling: 
Transfer by debtor of proceeds of stock sale to investment fund avoided as fraudulent.
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Commercial case opionion summary, case decided on March 12,2010, LexisNexis #0510-033

Altman v. Southland Homes Corp. (In re Kronk)

Chapter 7 trustee filed a complaint to avoid the transfer of property from the debtors to defendant transferee pursuant to 11 U.S.C.S. § 548(a)(1)(B) and to recover the property pursuant to 11 U.S.C.S. § 550.
Ruling: 
Transferee's knowledge of debtor's financial difficulty was not sufficient evidence to avoid transfer as fraudulent.
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Consumer case opionion summary, case decided on February 08,2010, LexisNexis #0510-023

Feldman v. Chase Home Finance (In re Image Masters Inc.)

Chapter 7 trustee brought claims to avoid over $ 23 million of transfers made to defendants, residential mortgage lenders. The transfers were underlying mortgage payments made by the debtors, the facilitators of a multi-million dollar Ponzi scheme. The lenders moved to dismiss all counts of the complaint for failure to join parties under Fed. R. Civ. P. 12(b)(7) and 19, and the avoidance claims under Fed. R. Civ. P. 12(b)(6).
Ruling: 
Transfers by debtor that operated Ponzi scheme to mortgage lender that was ignorant of scheme were not avoidable on grounds of actual or constructive fraud.
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Commercial case opionion summary, case decided on December 17,2009, LexisNexis #0210-062

Farinash v. Bensusan (In re Prebal Jeep Inc.)

This adversary proceeding was initiated by plaintiff chapter 7 Trustee to recover allegedly fraudulent and preferential transfers made by debtor auto dealership to defendant investors. The proceeding was before the court on cross-motions for partial summary judgment.
Ruling: 
Transfer that amounted to exchange of reasonably equivalent value was not avoidable.
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Commercial case opionion summary, case decided on November 30,2009, LexisNexis #0110-089

Mitrano v. Melka

Appellant debtor filed a notice of appeal from an order entered by the Bankruptcy Court for the Eastern District of Virginia dismissing an adversary proceeding and denying the debtor's first motion for reconsideration. The debtor also appealed the bankruptcy court's denial of his second motion for reconsideration and his motion to amend the complaint or transfer proceedings.
Ruling: 
Bankruptcy court properly dismissed adversary proceeding and denied motions for reconsideration.
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Consumer case opionion summary, case decided on November 05,2009, LexisNexis #1209-019

Harden v. Nemchak (In re Wingen)

Debtor filed a voluntary petition in bankruptcy under chapter 7. Plaintiff, Trustee of the debtor's bankruptcy estate, filed an adversary proceeding under 11 U.S.C.S. § 548 seeking to avoid and recover the debtor's transfer of a one-half interest in a beach house to defendant, his wife. The Trustee filed a motion for summary judgment on this adversary proceeding.
Ruling: 
Transfer of beach home to debtor's wife for less than 60 percent of value was avoidable.
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Consumer case opionion summary, case decided on October 16,2009, LexisNexis #1209-053

Schaefer v. First National Bank

Plaintiff chapter 11 debtors filed an adversary proceeding against defendants, a bank and a committee of unsecured creditors, seeking a judgment determining the validity and priority of liens against real property they owned. The committee filed a crossclaim against the bank, seeking to avoid a mortgage under 11 U.S.C.S. § 548(a)(1)(B), which the debtors gave the bank.
Ruling: 
Constructively fraudulent mortgage avoided.
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Consumer case opionion summary, case decided on October 15,2009, LexisNexis #1109-055

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