- 11 U.S.C.
Rupp v. Mayberry (In re Crocker Cos.)
Nov
08
2007
Ruling
Funds received by creditor to be held in trust were preferential not protected by earmarking doctrine from recovery.
Procedural posture
Plaintiff bankruptcy trustee argued that certain transfers made to defendant creditor were preferential pursuant to 11 U.S.C. § 547 and fraudulent pursuant to 11 U.S.C. § 548 and Utah Code Ann. § 25-6-5(1)(b). The parties cross-moved for summary judgment. In addition, third party defendants moved to dismiss, the trustee sought remand, and the trustee moved to strike portions of an affidavit.
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- 11 U.S.C.
Hechinger Inv. Co. of Del. Inc. v. Universal Forest Prods. (In re Hechinger Inv. Co. of Del. Inc.)
Jun
07
2007
Ruling
Existing credit relationship does not bar contemporaneous exchange for new value defense to avoidance.
Procedural posture
Appellee chapter 11 debtor sued appellant creditor in bankruptcy court to recover alleged preferential transfers under 11 U.S.C. §§ 547 and 550. The bankruptcy court denied the creditor's spoliation motion and entered judgment in favor of the debtor. The District Court for the District of Delaware affirmed. The creditor appealed.
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- 11 U.S.C.
Velde v. Kirsch
Apr
12
2007
Ruling
Issuance of check to replace prior check drawn on insufficient funds resulting in release of lien was a contemporaneous exchange for new value.
Procedural posture
Plaintiff chapter 7 trustee filed an adversary proceeding seeking to avoid an alleged preferential transfer made to defendant creditor. The creditor appealed after the bankruptcy court granted summary judgment to the trustee, finding that a check that the creditor had received from the chapter 7 debtor was an avoidable preferential transfer under 11 U.S.C. § 547(b).
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- 11 U.S.C.
Rocor Intl Inc. v. Pam American Life Ins. (In re Rocor Intl Inc.)
Mar
30
2007
Ruling
Payment to insurer within preference period was avoidable as provision of policy was not new value.
Procedural posture
Plaintiff bankruptcy estate filed an action under 11 U.S.C. § 547(b), seeking avoidance of a payment a debtor in bankruptcy made to defendant insurer. The bankruptcy court granted the insurer's motion for summary judgment, and the estate appealed.
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- 11 U.S.C.
Velde v. Kirsch (In re Miller)
Aug
29
2006
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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- 11 U.S.C.
Peters v. Wray State Bank (In re Kerst)
Aug
08
2006
Ruling
Bank's delay of nine days in perfecting auto lien did not prevent a substantially contemporaneous transfer and could not be avoided.
Procedural posture
Debtor had a car loan with a lender. He refinanced his car loan with defendant bank. The bank's lien was recorded 47 days after debtor executed the security agreement. He later filed for bankruptcy. Plaintiff chapter 7 trustee sought to avoid the bank's lien. The bank argued (1) the transfer was protected under the earmarking doctrine or (2) it was substantially contemporaneous exchange for new value per 11 U.S.C. § 547(c)(1).
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- 11 U.S.C.
Anstine v. Centex Home Equity Co. LLC (In re Pepper)
Mar
28
2006
Ruling
Creditor was denied an appeal of a transfer avoidance judgment since the parties may have intended to make a contemporaneous exchange but in fact delayed recording a deed for seven months.
Procedural posture
Defendant creditor appealed a judgment entered by the Bankruptcy Court for the District of Colorado in favor of plaintiff chapter 7 trustee avoiding a transfer made by the debtors to the creditor pursuant to 11 U.S.C. § 547(b). The transfer at issue was the creditor's recording of a deed of trust seven months and 18 days after the loan transaction. The creditor argued that the transaction was exempt under 11 U.S.C. § 547(c).
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- 11 U.S.C.
Rocin Liquidation Estate v. Pan-American Life Ins. Co. (In re Rocor Intl Inc.)
Feb
17
2006
Ruling
Transfer via check was deemed a contemporaneous exchange for new value not a payment on account of an antecedent debt since the date of delivery of the check was the transfer date.
Procedural posture
Plaintiff, the liquidation estate which was debtor's successor, brought an action against defendant creditor, seeking to avoid a $67,610 payment as a preference under 11 U.S.C. § 547. Before the court were the parties'cross-motions for summary judgment.
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- 11 U.S.C.
Brown v. Leslie Kitchenmaster & Kot Inc. (In re Hertzler Halstead Hosp.)
Nov
15
2005
Ruling
Creditor could not avoid recovery of preferential transfers since the payments were not intended to be contemporaneous exchanges for new value but rather satisfied an antecedent debt.
Procedural posture
Plaintiff trustee sued defendant, an individual and a corporation, under 11 U.S.C. §§ 547 and 548 to avoid and recover alleged preferential and fraudulent transfers made to them by the debtor prior to the date of debtor's bankruptcy petition.
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