§ 550

Shubert v. Lucent Techs. Inc. (In re Winstar Communs. Inc.)

Appellant creditor sought review of a decision from the United States District Court for the District of Delaware, which affirmed a bankruptcy court decision holding, among other things, that the trustee was entitled to recover approximately $ 188 million from the creditor under 11 U.S.C.S. § 550(a) as an avoidable preference payment.
Ruling: 
Bankruptcy court properly held that debtor's primary supplier was a non-statutory insider allowing for avoidance of transaction within one-year prior to petition date.
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Commercial case opionion summary, case decided on February 03,2009, LexisNexis #0309-067

Askenaizer v. Wyatt (In re BeaconVision Inc.)

Plaintiff, the chapter 7 trustee, filed a complaint against various defendants who were alleged to have received funds from a $ 200,000 deposit to an escrow account made by the debtor as an anticipated loan commitment fee for a $ 2 million loan that was never completed. The $200,000 was distributed. The primary issue was which defendant was the initial transferee of the deposit for purposes of transferee liability under 11 U.S.C.S. § 550(a).
Ruling: 
Corporate lender was initial transferee of funds disbursed out of escrow deposit intended as commitment fee for debtor's loan.
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Commercial case opionion summary, case decided on January 20,2009, LexisNexis #0309-068

CLC Creditors Grantor Trust v. Howard Savings Bank (In re Commercial Loan Corp.)

Debtor, a loan corporation, filed a petition under chapter 11 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. The court confirmed the creditors' Second Amended Plan of Liquidation, which provided for the creation of plaintiff trust, and the trust filed an adversary proceeding against defendant banks, seeking an order avoiding transfers the debtor made to the banks. The banks moved for summary judgment.
Ruling: 
Prepetition transfers to banks were not avoidable due to debtor's fraudulent purchase of stock from those banks.
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Commercial case opionion summary, case decided on November 19,2008, LexisNexis #0209-067

Jensen v. Bank of Am. Mortg. Capital Corp. (In re General Mortg. Corp. of Am.)

Plaintiff sued defendant mortgage assignees, seeking to recover an avoided transfer pursuant to 11 U.S.C.S. § 550. The trustee renewed her motion for summary judgment.
Ruling: 
Trustee could avoid transfer received by mortgage servicing agent on behalf of mortgagee.
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Commercial case opionion summary, case decided on November 17,2008, LexisNexis #0209-138

Schnittjer v. Linn Area Credit Union (In re Sickels)

Plaintiff chapter 7 trustee filed an adversary proceeding pursuant to 11 U.S.C.S. § 544 against defendant creditor seeking to avoid the creditor's mortgage. The trustee asserted that the mortgage was not recorded prior to the petition date. The parties filed cross-motions for partial summary judgment.
Ruling: 
Trustee not entitled to money judgment once mortgage recorded in violation of stay had been avoided.
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Consumer case opionion summary, case decided on July 11,2008, LexisNexis #0808-119

Island Place Apts. LLC v. First How View Corp. (In re Greater Miami Neighborhoods Inc.)

Plaintiff, an apartment complex owned by a debtor, filed an adversary proceeding against defendants, a successful bidder and a third party purchaser, to avoid transfer of plaintiff's property pursuant to a foreclosure sale and to recover the property pursuant to 11 U.S.C.S. § 550. The bidder and the purchaser filed a motion to dismiss, which was treated as a motion for summary judgment.
Ruling: 
Duly conducted foreclosure sale to good faith purchaser could not be avoided.
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Commercial case opionion summary, case decided on June 16,2008, LexisNexis #0808-015

Ovel v. Community Sav. Bank

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid a mortgage granted by the debtor's mother. The trustee previously avoided the transfer from the debtor to his mother. The trustee asserted that the creditor was an immediate or mediate transferee from the debtor's mother and the mortgage should likewise be avoided. The trustee moved for partial summary judgment.
Ruling: 
Mortgage granted by debtor's mother was avoidable where deed from debtor to mother had been avoided.
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Consumer case opionion summary, case decided on June 10,2008, LexisNexis #0808-118

Terry v. Meredith (In re Meredith)

Appellant bankruptcy trustee brought an adversary proceeding against appellee, the president of a corporate successor of debtor, claiming that he was entitled to recover the value of certain assets fraudulently transferred from the bankruptcy estate, pursuant to 11 U.S.C.S. § 550(a)(1). The bankruptcy court and U.S. District Court for the Eastern District of Virginia, at Richmond, rejected the trustee's claim. The trustee appealed.
Ruling: 
Transfer of accounting practice from debtor to corporate successor was not recoverable from nominal president of successor who did not benefit from the transfer.
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Consumer case opionion summary, case decided on June 03,2008, LexisNexis #0708-032

Zimmerman v. Maney

Appellants, officers of a corporation that sold property of debtors, a married couple who filed a chapter 13, challenged an order of the Bankruptcy Court for the District of Arizona granting summary judgment to the chapter 13 trustee on a claim to avoid transfer of the property to defendants, including appellants and others, and holding said parties jointly and severally liable for the proceeds thereof per 11 U.S.C.S. § 550(a)(1).
Ruling: 
Bankruptcy court properly avoided transfer of balance of proceeds of estate property sale where no abandonment had occurred.
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Consumer case opionion summary, case decided on April 30,2008, LexisNexis #0608-065

Sender v. Love Funeral Home (In re Potter)

Plaintiff trustee filed an adversary proceeding against defendant funeral home, alleging that a chapter 7 debtor made postpetition transfers to the funeral home that were avoidable under 11 U.S.C.S. § 549. The trustee sought an order requiring the funeral home to return money it received to the debtor's bankruptcy estate, pursuant to 11 U.S.C.S. §§ 550 and 551. The funeral home opposed the trustee's action.
Ruling: 
Payments by debtor to funeral home from proceeds of deceased debtor spouse's life insurance were not avoidable as debtor was initial transferee.
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Consumer case opionion summary, case decided on March 26,2008, LexisNexis #0508-067

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