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§ 547

Eleasser v. Cougar Crest Lodge LLC (In re Weddle)

Ruling
Transfers to limited liability company was not an insider of debtor were not avoidable.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant creditor, a limited liability company ("LLC") exclusively managed by a bankruptcy debtor's parent, alleging that the LLC was an insider of the debtors and thus the LLC's recordation of judgments against co-debtors constituted transfers within the preference period of 11 U.S.C. § 547(b). The trustee and the LLC cross-moved for summary judgment.

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opinion summary, case decided on October 05, 2006 , LexisNexis #1106-125

Rocin Liquidation Estate v. Alta AH&L (In re Rocin Intl Inc.)

Ruling
Transfers to provider of health care benefits to debtor's independent contractors within 90 days prior to petition date were avoidable.
Procedural posture

Plaintiff, the liquidation estate of the debtor, brought an adversary complaint against defendant creditor, the provider of health benefits for independent contractors engaged by the debtor. The complaint sought avoidance of certain alleged preferential transfers and recovery of their monetary value pursuant to 11 U.S.C. § 547.

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opinion summary, case decided on September 29, 2006 , LexisNexis #1106-126

Oakridge Consulting Inc. v. Mark A. Robicheaux Inc. (In re Consolidated FGH Liquidating Trust)

Ruling
Defendant in preference proceeding was not entitled to credit for payments to third parties on debtor's behalf.
Procedural posture

Chapter 11 debtor brought an adversary proceeding pursuant to 11 U.S.C. §§ 547(b) and 550(a) against defendant for the recovery of preferential transfers made by debtor to defendant.

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opinion summary, case decided on August 31, 2006 , LexisNexis #1006-098

Tardiff v. MBNA Am. Bank (In re Kepley)

Ruling
Payment to creditor with funds held by debtor and spouse as tenants by the entirety was not avoidable.
Procedural posture

Chapter 7 trustee brought an adversary proceeding against a creditor, alleging that a payment by the debtor prior to the bankruptcy filing was a voidable preference under 11 U.S.C. § 547(b)(4)(A). The parties cross-moved for summary judgment.

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opinion summary, case decided on August 30, 2006 , LexisNexis #1206-029

Napolitano v. Vibra-Conn Inc. (In re P.J. Patton Co.)

Ruling
Checks payable jointly to debtor and third party and negotiated by the third party were avoidable.
Procedural posture

In this adversary proceeding commenced under 11 U.S.C. §§ 547 and 550(a), plaintiff chapter 7 trustee sought avoidance of certain transfers and recovery of $23,871.54 (plus interest and costs) as preferences paid to defendant involving, inter alia, three checks made payable to defendant and the debtor jointly.

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opinion summary, case decided on August 30, 2006 , LexisNexis #1006-097

Velde v. Kirsch (In re Miller)

Ruling
Subsequent new value defense to avoidance not available where preferential payment was made to cure a bounced check.
Procedural posture

An involuntary chapter 7 petition was filed against debtor. Debtor converted the case to chapter 11. The case was later converted to chapter 7. The trustee commenced an adversary proceeding seeking to avoid a payment from debtor to a soybean seller of $44,955 as a preferential transfer. Pending was the trustee's motion for partial summary judgment. The complaint also sought to avoid a separate transfer, but it was not included in the motion.

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opinion summary, case decided on August 29, 2006 , LexisNexis #0107-097

Mann v. GTCR Golder Rauner LLC

Ruling
Sale of debtor's assets to another company owned by debtor's former CEO was not preferential as debtor was not an insider at time of transfer.
Procedural posture

Plaintiff, the trustee for a debtor in chapter 7 bankruptcy, moved for summary judgment in her adversary proceeding against defendants, a second consulting company, its owner, and the owner's wife, to avoid the sale of the debtor's assets to the second consulting company as a preferential transfer under 11 U.S.C. § 547.

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opinion summary, case decided on August 28, 2006 , LexisNexis #0906-092

Morin v. OYO Instruments LP (In re Labelon Corp.)

Ruling
Transfers to creditor pursuant to prepetition distribution agreement were not avoidable.
Procedural posture

Pursuant to 11 U.S.C. §§ 547(b), 550 and 553(b), the chapter 11 debtor filed an adversary proceeding against defendant creditor to avoid certain transfers. After defendant filed an answer, plaintiff trustee moved for summary judgment and to amend the complaint to add intentional and constructive fraudulent transfer causes of action under state and federal law against defendant. Defendant cross-moved for summary judgment.

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opinion summary, case decided on August 28, 2006 , LexisNexis #1206-028

Jensen v. Eck (In re Steele)

Ruling
Close friend of debtor was not an insider so that transfer to the friend more than 90 days prepetition was not preferential.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant transferee of payments from a bankruptcy debtor, seeking to set aside the transfers as preferential. The transferee moved to dismiss the proceeding on the ground that the transfers occurred outside the preference period of 11 U.S.C. § 547(b)(4)(B), the trustee asserted that the period was equitably tolled.

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opinion summary, case decided on August 28, 2006 , LexisNexis #1206-030

Boyd v. Household Auto Fin. (In re Boyd)

Ruling
Creditor's default in adversary proceeding was due to neglect of seven court notices which was not excusable.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor to avoid its lien on the debtors'vehicle as being a preferential transfer under 11 U.S.C. § 547. The creditor did not respond and a default judgment was entered against it. The creditor moved for relief from the default judgment pursuant to the "excusable neglect" standard of Fed. R. Civ. P. 60(b)(1), made applicable to bankruptcy by Fed. R. Bankr. P. 9024.

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opinion summary, case decided on August 11, 2006 , LexisNexis #0906-027