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§ 547(b)(4)

Kotoshirodo v. Brennan (In re Lull)

Ruling
Transferee, owner of LLC, of which debtor Ponzi scheme operator's corporation was majority member and co-owner, was an insider, entitling trustee to extended reach back.
Procedural posture

Chapter 7 trustee filed a complaint against defendant creditor to recover avoidable preferential transfers from the debtor to the creditor under 11 U.S.C.S. § 547(b). The parties filed cross-motions for summary judgment. At a previous hearing, the trustee's motion was granted as to all elements of avoidable preferences except for the question of whether the creditor was an "insider" as defined in 11 U.S.C.S. § 101(31).

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Consumer opinion summary, case decided on April 26, 2011 , LexisNexis #0511-090

Cohen v. Roy (In re Cohen)

Ruling
Judgment lien avoided as preferential where there was no in-state interest to attach prior to preference period.
Procedural posture

Plaintiff debtor filed an adversary complaint against creditor defendants pursuant to 11 U.S.C.S. §§ 547 and 550, seeking a determination that a writ of garnishment-created judgment lien, that was avoidable as a preference. The creditors asserted that their interest in the debtor's stock account was not avoidable because they filed the judgment certificate more than 90 days before the debtor filed his chapter 11 petition.

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Consumer opinion summary, case decided on October 30, 2009 , LexisNexis #1209-051

Anstine v. Carl Zeiss Meditec AG (U.S. Medical Inc.)

Ruling
Bankruptcy appellate panel properly reversed finding that creditor was an insider where creditor operated at arm's length on transfer in question.
Procedural posture

Appellant trustee sued appellee creditor pursuant to 11 U.S.C.S. § 547(b)(4)(B), seeking to avoid certain transfers. The bankruptcy court held that the creditor was a nonstatutory insider under 11 U.S.C.S. § 101(31) and permitted the trustee to avoid the transfers. The United States Bankruptcy Appellate Panel reversed the bankruptcy court. The trustee appealed the judgment.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on July 15, 2008 , LexisNexis #0808-066

Carl Zeiss Meditec AG v. Anstine (In re U.S. Med. Inc.)

Ruling
Avoidance of transfers reversed where creditor had close, but not insider, relationship with debtor.
Procedural posture

Appellant, a creditor, sought review of a decision of the Bankruptcy Court for the District of Colorado, entered in favor of appellee, the chapter 7 trustee, after ruling that the creditor was a non-statutory insider to the debtor. The trustee was allowed to avoid certain transfers from the debtor to the creditor, which were found to be preferential pursuant to 11 U.S.C. §§ 547(b)(4)(B) and 550(a)(1).

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on June 12, 2007 , LexisNexis #1007-068

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

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

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

Heyer v. Conesus Milk Producers Coop. Assn (In re Clayson)

Ruling
Receipt of funds from a cattle auction was deemed not preferential since the security interest in debtor's cattle was deemed perfected prior to preference period.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant creditor seeking to avoid an alleged transfer from the debtor as preferential under 11 U.S.C. §§ 547 and 550. The trustee contended that the creditor failed to perfect its security interest in the debtor's cattle, and its receipt of funds from an auction of such cattle constituted a preference.

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opinion summary, case decided on March 24, 2006 , LexisNexis #0506-021