Jan
10
2007
Bakst v. Sawran (In re Sawran)
The debtor filed for relief under chapter 7. The trustee was granted a judgment on the pleadings for a preferential transfer that the debtor made to the father. The trustee filed a subsequent action to recapture money that the father had transferred to defendants, a son and daughter-in-law, and a daughter, as subsequent transferees under 11 U.S.C. § 550(a). The court issued findings and conclusions.
Ruling:
Recovery of preferential payments from subsequent transferors allowed solely to the extent of postpetition payments to debtor.
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Jan
05
2007
Boyer v. Belavilas
Appellants, a mother and two minor children, appealed from the District Court for the Northern District of Indiana, which affirmed the bankruptcy judge's order holding making the mother, father, and children jointly and severally responsible for paying $183,130 to the bankruptcy estate from custodial accounts established under the Uniform Transfers to Minors Act ("UTMA"). Appellee trustee opposed the appeal.
Ruling:
Transfer of insurance proceeds to minor childrens'trust and then to entities controlled by debtor was recoverable.
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Dec
19
2006
Kendall v. Carbatt (In re Carbatt)
Chapter 7 trustee sought to avoid the prepetition transfer by debtor to defendant ex-wife of his interest in their family home and in an unsecured promissory note pursuant to 11 U.S.C. §§ 548(a) and 544(b). He also sought to recover the transfers or their value from the wife pursuant to 11 U.S.C. § 550(a)(1) and , with respect to his interest in the house, from defendant, the wife's mother, as a subsequent transferee pursuant to section 550(a)(2).
Ruling:
Transfer of marital home to former spouse for reasonably equivalent value was not avoidable nor was subsequent transfer from former spouse to her mother.
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Aug
31
2006
Takena USA LLC v. Fisher
Appellee chapter 7 trustee filed an application in the bankruptcy court for appointment of a receiver to monitor the operations of appellant, the purchaser of assets that had belonged to a chapter 7 debtor. The bankruptcy court granted the application and waived the bond requirement under 735 Ill. Comp. Stat. 5/2-415(a). The purchaser appealed.
Ruling:
Bankruptcy court properly appointed receiver in case involving allegedly fraudulent transfers of intangible assets.
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Jun
27
2006
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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May
18
2006
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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May
12
2006
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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Apr
12
2006
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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Apr
10
2006
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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Feb
27
2006
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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