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§ 549

Rushton v. Bank of Utah (In re C.W. Mining Co.)

Ruling
Bankruptcy court properly denied turnover of proceeds of CD liquidated postpetition where there would be no benefit to the estate.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant bank, seeking a determination that he was entitled under 11 U.S.C.S. §§ 549 and 550 to recover postpetition payments that were made to the bank or an order declaring that the bank's action in liquidating a certificate of deposit ("CD") was void. The U.S. Bankruptcy Court for the District of Utah granted the bank's motion for summary judgment, and the trustee appealed.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on September 05, 2012 , LexisNexis #1012-024

Oliver v. Moore (In re Henries)

Ruling
Quitclaim deed to debtor's former spouse validly executed prior to petition date pursuant to separation agreement was not avoidable.
Procedural posture

Chapter 7 trustee initiated this adversary proceeding against defendant, the debtor's former spouse, seeking to avoid the transfer of property pursuant to 11 U.S.C.S. § 549.

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Consumer opinion summary, case decided on June 25, 2012 , LexisNexis #0712-127

Shults & Tamm v. Brown (In re Hawaiian Telcom Communs. Inc.)

Ruling
Postpetition severance payments to debtor's former employee were avoidable as agreement was not executory, was not assumed and payments were not made in ordinary course of business.
Procedural posture

Plaintiff litigation trustee filed an adversary proceeding against defendant, a former employee of the debtors, to recover allegedly avoidable transfers. The parties filed motions for summary judgment as to the count which sought to avoid postpetition severance payments to defendant under 11 U.S.C.S. § 549.

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Commercial opinion summary, case decided on January 30, 2012 , LexisNexis #0212-128

Majestic Star Casino LLC v. Barden Dev. Inc. (In re Majestic Star Casino LLC)

Ruling
Revocation by parent of debtor's qualified subchapter S status was an avoidable transfer.
Procedural posture

Debtors multi-jurisdictional casino operators brought an adversary complaint to avoid a postpetition transfer and disposition of alleged property of the estate under 11 U.S.C.S. §§ 549, 550, and for violation of the automatic stay under 11 U.S.C.S. § 362. The transfer was alleged to have occurred when defendant parent revoked debtors' qualified subchapter S subsidiary (QSub) status with defendant Internal Revenue Service (IRS).

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Commercial opinion summary, case decided on January 24, 2012 , LexisNexis #0212-129

Kepler v. Eichline (In re Eichline)

Ruling
Postpetition transfer of property in which debtor retained an interest could be avoided.
Procedural posture

The United States trustee filed a motion to reopen the debtor's closed case, and brought an adversary complaint under 11 U.S.C.S. §§ 549 and 551, asserting that debtor failed to disclose an interest in the real property where he resided, which had been conveyed to his son and then to a revocable family trust.

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Consumer opinion summary, case decided on December 13, 2011 , LexisNexis #0212-091

Seaver v. New Buffalo Auto Sales LLC (In re Hecker)

Ruling
Bankruptcy court erred in holding that postpetition registration of prepetition judgments were not potentially avoidable.
Procedural posture

Appellant bankruptcy trustee brought an adversary proceeding against appellee holders of judgments against a bankruptcy debtor seeking to avoid the judgments as preferential transfers under 11 U.S.C.S. § 547, to avoid the postpetition registrations of the judgments under 11 U.S.C.S. § 549. The trustee appealed the judgment in favor of the holders entered in the U.S. Bankruptcy Court for the District of Minnesota.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on October 20, 2011 , LexisNexis #1111-054

Dill v. Brad Hall & Assocs. (In re Indian Capitol Distrib.)

Ruling
Payments to vendor for reasonably equivalent value in gasoline delivered postpetition were not avoidable.
Procedural posture

Chapter 7 trustee filed a complaint against defendant vendor seeking to avoid a postpetition transfer under 11 U.S.C.S. § 549 and to recover it for the benefit of the estate under 11 U.S.C.S. § 550. The vendor filed a motion to dismiss for failure to state a claim, which the court treated as a motion for summary judgment.

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Commercial opinion summary, case decided on October 05, 2011 , LexisNexis #1111-055

Rushton v. Bank of Utah (In re C.W. Mining Co.)

Ruling
Trustee not entitled to turnover of certificate of deposit in favor of debtor that was liquidated by bank.
Procedural posture

Plaintiff Chapter 7 trustee filed an adversary proceeding against defendant bank, seeking a determination that he was entitled under 11 U.S.C.S. §§ 549 and 550(a)(1) to recover $383,099 in postpetition payments that were made to the bank, or in the alternative, an order declaring that the bank's action in liquidating a certificate of deposit ("CD") was void under 11 U.S.C.S. § 362(a). The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on September 30, 2011 , LexisNexis #1111-091

Morton v. Kievit (In re Vallecito Gas LLC)

Ruling
Postpetition assignments of overriding royalty interests in oil and gas leases could be recovered provided amounts paid by assignees were refunded.
Procedural posture

Chapter 11 trustee filed an adversary proceeding against defendants, individuals and entities that purchased overriding royalty interests ("ORRIs") in an oil and gas lease that was located on Navajo Nation land, seeking a determination that the ORRIs were void or voidable and could be recovered for a gas company's bankruptcy estate pursuant to 11 U.S.C.S. §§ 362, 549, and 550.

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Commercial opinion summary, case decided on July 19, 2011 , LexisNexis #0911-127

Official Committee of Unsecured Creditors v. Western United Life Assur. Co. (In re Tri-Valley Distrib. Inc.)

Ruling
Avoidance of transfers to lender denied on good faith grounds.
Procedural posture

All parties moved for summary judgment on claims in an adversary proceeding challenging, as fraudulent conveyances, transfers of interests in property to defendant life assurance company (Lender), which had financed transactions involving debtors, a non-filing affiliate thereof, and a third party. When the loan defaulted, Lender sold the property that comprised collateral, the proceeds of which were escrowed pending final judgment herein.

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Commercial opinion summary, case decided on June 16, 2011 , LexisNexis #0711-104