§ 550(a)

In re Spencer

Movant bankruptcy trustee sought an order requiring debtors to turn over funds that, the trustee alleged, remained in their bank accounts on the date of their bankruptcy petition. Debtors objected that they had written checks or otherwise committed the funds prior to filing their petition and were under no duty to turn over the funds to the trustee because the trustee had authority to recover the funds from the various payees.
Ruling: 
Trustee's motion for turnover was granted since debtors were liable to estate for transfer of estate assets resulting from postpetition honoring of prepetition checks.
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Enron Corp. v. Intl Fin. Corp. (In re Enron Corp.)

Plaintiffs, reorganized debtors, commenced an adversary proceeding against defendant mediate transferees to avoid certain transactions, pursuant to 11 U.S.C. § 548, and to recover the assets that were transferred pursuant to 11 U.S.C. § 550(a). The mediate transferees filed a motion to dismiss.
Ruling: 
Complaint against mediate transferees to avoid certain transactions and recover the assets was dismissed because the debtors had to first seek to avoid transfers to the initial transferee.
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Schechter v. 5841 Bldg. Corp. (In re Hansen)

Plaintiff, the chapter 7 trustee, filed an adversary proceeding under 11 U.S.C. § 548 against defendants, a corporation that was the transferee of debtor's payments, the subsequent recipient of the payments, and the president of both of those entities, to recover debtor's payments as fraudulent transfers. Following the close of discovery, the entities' president moved for summary judgment.
Ruling: 
President of a corporate transferee of debtor payments was granted summary judgment on fraudulent transfer claim since the president was not the "initial transferee" and did not benefit from the transfer.
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Shapiro v. Art Leather Inc. (In re Connolly N. Am. LLC)

Plaintiff trustee sued defendant accounts receivable seller pursuant to 11 U.S.C. § 550(a)(1), seeking to avoid and recover six prepetition payments that the chapter 7 debtor made to the purchaser of defendant's accounts receivable. Defendant moved for summary judgment.
Ruling: 
Summary judgment regarding avoidance and recovery claim was denied since issues of fact existed as to whether creditor benefitted from the transfers.
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Anderson v. Sandstone Estates LLC (In re S & W Intl Food Specialies Inc.)

Plaintiff chapter 7 trustee's filed an adversary proceeding against defendant home builder seeking to avoid a fraudulent transfer pursuant to 11 U.S.C. § 548 and to recover funds pursuant to 11 U.S.C. § 550. The home builder filed a motion for partial summary judgment contending that it was not an initial transferee under section 550(a). The Trustee filed a cross-motion for summary judgment.
Ruling: 
Transfer was deemed fraudulent, and trustee was entitled to recover from home builder, which was deemed initial transferee.
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Andreini & Co. v. Pony Express Delivery Servs.

Appellant broker challenged a decision from the District Court for the Northern District of Georgia, which affirmed a bankruptcy court's decision to grant summary judgment in favor of appellee debtor in a dispute over an alleged preferential transfer.
Ruling: 
Court reversed a district court ruling by finding that an insurance broker was not a creditor that held a debt owed and, thus, was not an initial transferee from which payments could be recovered.
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