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McKittrick v. Gavilon LLC (In re Cascade Grain Prods. LLC)

McKittrick v. Gavilon LLC (In re Cascade Grain Prods. LLC)

Ruling
Payments for shipments received more than two days after the contract dates were made under forward contracts and not preferential.
Procedural posture

Plaintiff Chapter 7 trustee sought to recover as preferential transfers under 11 U.S.C.S. § 547(b) payments that the debtor paid to defendant companies. Defendants filed a motion for summary judgment arguing that the transfers were settlement payments on account of forward contracts and therefore not subject to recovery as preferences under 11 U.S.C.S. § 546(e).

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Commercial opinion summary, case decided on October 28, 2011 , LexisNexis #1111-124