Hayes v. Morgan Stanley DW Inc. (In re Stewart Fin. Co.)
Mar
30
2007
Ruling
Payments to investment company margin accounts belonging to debtor's former principal were not avoidable.
Procedural posture
Plaintiff trustee filed an action against defendant investment company to avoid and recover, as fraudulent transfers, certain payments made by the debtor that were to be applied to margin accounts opened by and belonging to a former principal of the debtor. The investment company filed a motion for summary judgment.
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Court
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Official Committee of Unsecured Creditors of Norstan Apparel Shops Inc. v. Lattman (In re Norstan Apparel Shops Inc.)
Mar
30
2007
Ruling
S-Corp distributions to shareholders did not qualify under safe harbor provision as they did not involve publicly traded securities of impact the public securities market.
Procedural posture
Defendants filed a motion to dismiss the complaint filed by plaintiff, chapter 11 debtor's official committee of unsecured creditors, which alleged that certain payments made to defendants by debtor were constructive fraudulent conveyances to defendants pursuant to 11 U.S.C. § 544 and N.Y. Debt. & Cred. Law §§ 273, 274 and 275, and that defendants breached their fiduciary duty to debtor.
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Court
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Singer v. Kimberly Clark Corp. (In re American Pad & Paper Co.)
Mar
02
2007
Ruling
Avoidance proceedings filed by trustee appointed more than two years after order for relief were untimely.
Procedural posture
Appellant chapter 7 trustee filed actions in debtors'bankruptcy proceedings to avoid preferences. The bankruptcy court dismissed the actions as untimely under 11 U.S.C. § 546(a), the District Court for the District of Delaware affirmed. The trustee appealed.
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Ostrander v. Gardner (In re Milivision Inc.)
Jan
16
2007
Ruling
Creditor's postpetition recording of financing statement did not relate back to date of loan.
Procedural posture
Appellant lenders made a loan to debtor. The next day, debtor's creditors filed an involuntary chapter 11 petition. Unaware of the bankruptcy petition, appellants did not record a financing statement relating to their loan until five days after the loan was made. The bankruptcy court permitted the trustee to invoke 11 U.S.C. § 547, the "strong-arm" provision, to avoid appellants'interest in debtor's assets. They appealed.
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Official Comm. of Unsecured Creditors v. Acres of Diamonds LP (In re The IT Group Inc.)
Dec
29
2006
Ruling
Settlement payment by financial institution was protected from avoidance.
Procedural posture
Plaintiff liquidating trust brought an adversary claim against defendant transferee, seeking to avoid and recover $575,000 as a fraudulent transfer pursuant to 11 U.S.C. §§ 548(a)(1)(B) and 550. The transferee moved for summary judgment, asserting that the transfer was a non- avoidable settlement payment pursuant to 11 U.S.C. § 546(e). Transferee and the trust also filed motions in limine concerning expert witness testimony.
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Court
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Warfield v. GMAC (In re Moore)
Oct
27
2006
Ruling
Trustee could avoid lien that did not fit within safe harbor provisions.
Procedural posture
Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid the creditor's lien as an unauthorized postpetition transfer under 11 U.S.C. §§ 549 and 544(a). The trustee also moved to compel turnover of the proceeds of the creditor's sale of the vehicle.
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Court
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In re Marineau
May
18
2006
Ruling
Court deemed that creditor's refusal to release state garnishment lien took priority over trustee's avoidance powers and thus did not vioalte automatic stay.
Procedural posture
Movant debtors sought to release funds garnished by respondent creditor and turnover of the garnished funds. The creditor cross-moved for relief from the automatic stay under 11 U.S.C. § 362 so that it could complete its state court garnishment of the funds.
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Court
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Goldberg v. Craig (In re Hydro-Action Inc.)
Mar
14
2006
Ruling
Alleged insiders of corporate debtor were granted summary judgment on the grounds that the preferential transfer claims were made untimely.
Procedural posture
Plaintiff bankruptcy trustee brought an adversary proceeding against defendants, alleged insiders of a corporate bankruptcy debtor, seeking to avoid alleged fraudulent, preferential, and postpetition transfers. The insiders moved for summary judgment based on the limitations period of 11 U.S.C. § 546(a) and based on lack of evidence of postpetition transfers.
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Court
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- 11 U.S.C.
Mullen v. Kalil (In re Mullen)
Feb
01
2006
Ruling
Debtor's action to avoid transfers to the debtor's former husband was time barred since the action was already disclosed in the debtor's discharged chapter 7 case and could not be revived by reopening the case and converting to chapter 11.
Procedural posture
Plaintiff debtor sued defendant former husband alleging that the transfers of a lease and a business were avoidable as fraudulent transfers under 11 U.S.C. § 548, the transfers of the lease and the business were avoidable under 11 U.S.C. § 544(b), the transfers of the lease and the business were avoidable preferences under 11 U.S.C. § 547(b). The former husband filed a motion for summary judgment.
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Court
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- 11 U.S.C.
Vaughan v. Meridan Natl Corp. (In re Ottawa River Steel Co.)
Jul
14
2005
Ruling
Creditor was denied summary judgment where the court ruled it could decide the date an order for relief triggered two-year limitations period for filing creditor's complaint.
Procedural posture
Plaintiff chapter 7 trustee commenced an adversary proceeding against defendants, creditors, seeking to recover certain prepetition transfers made by the debtor. The creditors moved for summary judgment, alleging that the trustee's claims were time barred under 11 U.S.C. § 546.
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Court
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