Skip to main content

§ 550

Redmond v. NCMIC Fin. Corp. (In re Brooke Corp.)

Ruling
Allegedly fraudulent transfer of operating expenses and loan payments to others could not be recovered from lender that allegedly benefitted.
Procedural posture

Chapter 7 trustee sought to avoid allegedly fraudulent transfers made by the debtors and to recover the value thereof from defendant, a finance corporation and lender (lender). As to one of the counts, the lender moved for summary judgment under Fed. R. Civ. P. 56, made applicable by Fed. R. Bankr. P. 7056, on the basis that it could not be liable within the meaning of 11 U.S.C.S. § 550(a)(1).

ABI Membership is required to access the full summary of Redmond v. NCMIC Fin. Corp. (In re Brooke Corp.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on March 13, 2012 , LexisNexis #0413-023

Tronox Inc. v. Anadarko Petroleum Corp. (In re Tronox Inc.)

Ruling
Debtor's recovery on fraudulent transfer claims was not capped by §550(a).
Procedural posture

Chapter 11 debtor filed a complaint seeking to establish that a transfer of assets in a spin-off was an intentional or constructive fraudulent conveyance under 11 U.S.C.S. §§ 548 or 544(b). Both parties moved for partial summary judgment. Defendant transferee sought a ruling that 11 U.S.C.S. § 550 capped the debtor's recovery on its claims at the amount of unpaid creditor claims. The debtor sought a ruling that § 550 imposed no cap.

ABI Membership is required to access the full summary of Tronox Inc. v. Anadarko Petroleum Corp. (In re Tronox Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on January 20, 2012 , LexisNexis #0212-058

Martinez v. Hutton (In re Harwell)

Ruling
Attorney's limited liability corporation was liable for fraudulent transfer by debtor of settlement funds to LLC, which LLC paid to debtor and debtor's family members.
Procedural posture

Chapter 7 trustee filed an action against defendants, an attorney and his limited liability company (LLC). Plaintiff alleged liability under 11 U.S.C.S. § 550 as well as counts for aiding and abetting and civil conspiracy.

ABI Membership is required to access the full summary of Martinez v. Hutton (In re Harwell) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on September 30, 2011 , LexisNexis #1011-140

Moser v. Najafi (In re Goushey)

Ruling
Transferee who received undisclosed settlement check from debtor's lawyer, delivered by debtor, was an initial transferee and transfer could be avoided.
Procedural posture

Trustee brought an adversary proceeding against defendant transferee of funds from a bankruptcy debtor to satisfy a debt of the debtor's former spouse, seeking to recover the funds as an unauthorized postpetition transfer of estate property from the debtor's undisclosed settlement of a lawsuit. The trustee and the transferee cross-moved for summary judgment.

ABI Membership is required to access the full summary of Moser v. Najafi (In re Goushey) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on June 17, 2011 , LexisNexis #0811-028

Goldman v. Capital City Mortgage Corp. (In re Nieves)

Ruling
Bankruptcy court properly avoided transfer that transferee, who was willfully ignorant of voidability, did not take in good faith.
Procedural posture

Chapter 7 trustee obtained consent orders avoiding initial and second transfers of the debtor's property, and after trial, obtained a judgment avoiding a third transfer to defendant mortgagee on a finding that it did not show it took for value, in good faith, and without knowledge of the voidability of the transfer under 11 U.S.C.S. § 550(b). The U.S. District Court for the District of Maryland affirmed. The mortgagee appealed.

ABI Membership is required to access the full summary of Goldman v. Capital City Mortgage Corp. (In re Nieves) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on June 10, 2011 , LexisNexis #0711-021

Kirschenbaum v. Leeds Morelli & Brown PC (In re Robert Plan of N.Y. Corp.)

Ruling
Transfers to law firm's trustee account were avoidable but could not be recovered after subsequent transfer to law firm itself.
Procedural posture

Chapter 7 trustee filed an adversary proceeding in which it sought to avoid and recover transfers from the debtor to defendant law firm under 11 U.S.C.S. §§ 547(b) and 550. The court conducted a trial on the matter.

ABI Membership is required to access the full summary of Kirschenbaum v. Leeds Morelli & Brown PC (In re Robert Plan of N.Y. Corp.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on May 05, 2011 , LexisNexis #0611-092

Montoya v. Tarin (In re Tarin)

Ruling
Transfer to creditor who accepted for value and in good faith could not be avoided.
Procedural posture

In a core proceeding to determine, avoid, or recover a preference under 28 U.S.C.S. § 157(b)(2)(F), a creditor moved for summary judgment on its 11 U.S.C.S. § 550 affirmative defenses.

ABI Membership is required to access the full summary of Montoya v. Tarin (In re Tarin) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on April 15, 2011 , LexisNexis #0511-091

Von Kahle v. Greenacre Prop. (In re Key Developers Group LLC)

Ruling
Debtor's payments to management company, which received them in good faith, were not avoidable.
Procedural posture

In an action by plaintiff trustee against defendant management company under 11 U.S.C.S. § 550, both parties filed cross motions for summary judgment on the management company's defense under § 550(b)(1) that it took the avoided transfers it received from the debtor in good faith and without knowledge of the voidability of the transfer avoided.

ABI Membership is required to access the full summary of Von Kahle v. Greenacre Prop. (In re Key Developers Group LLC) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on April 15, 2011 , LexisNexis #0511-064

Kapila v. IRS (In re ATM Fin. Servs. LLC)

Ruling
Fraudulent transfer by debtor Ponzi scheme operator to IRS on behalf of second company it owned could not be avoided as IRS was not the initial transferee.
Procedural posture

Plaintiff Chapter 7 trustee filed a complaint against defendant, the Internal Revenue Service (IRS), seeking to avoid an alleged fraudulent transfer from a debtor to the IRS pursuant to 11 U.S.C.S. § 548. The trustee filed two motions for partial summary judgment. In response, the IRS filed a cross motion for summary judgment, raising the good faith defense provided to secondary or intermediate transferees under 11 U.S.C.S. § 550(b).

ABI Membership is required to access the full summary of Kapila v. IRS (In re ATM Fin. Servs. LLC) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Consumer opinion summary, case decided on March 01, 2011 , LexisNexis #0311-129

Ogier v. Bauer Agency Inc. (In re Bauer Agency Inc.)

Ruling
Complaint provided sufficient notice of trustee's intent to seek avoidance of all transfers made by debtor to transferee.
Procedural posture

Chapter 7 Trustee alleged that debtor operated its insurance agency as a "Ponzi" scheme. The complaint alleged defendant received one or more transfers of $18,705 prior to the filing of the involuntary chapter 7 petition that were avoidable on one of three alternative grounds, and sought to recover the amount of the transfers under 11 U.S.C.S. § 550. Before the court was the trustee's "Motion to Determine Sufficiency of Claim."

ABI Membership is required to access the full summary of Ogier v. Bauer Agency Inc. (In re Bauer Agency Inc.) Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Commercial opinion summary, case decided on January 06, 2011 , LexisNexis #0411-021