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Menotte v. Oxyde Chemicals Inc. (In re JSL Chem. Corp.)

Menotte v. Oxyde Chemicals Inc. (In re JSL Chem. Corp.)

Ruling
Preference period payment made in response to being placed on credit hold was avoidable.
Procedural posture

Plaintiff, the chapter 7 trustee filed an adversary complaint to avoid and recover an alleged preferential transfer pursuant to 11 U.S.C.S. §§ 547 and 550 in the amount of $ 79,343.35 made by the debtor to defendant creditor, as payment for chemicals the creditor had supplied to the debtor. The parties filed cross-motions for summary judgment.

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Commercial opinion summary, case decided on February 10, 2010 , LexisNexis #0410-128