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§ 550

Wadsworth v. High Speed Aggregate Inc. (In re Trick Techs. Inc.)

Ruling
Recipient of restitution was an initial transferee from whom trustee could recover payment.

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Commercial opinion summary, case decided on July 22, 2013 , LexisNexis #0813-127

Tardif v. St. John the Evangelist Church (In re Engler)

Ruling
Trustee could not recover allegedly fraudulent charitable donation from church that was conduit and not an initial transferee.
Procedural posture

Trustee filed an adversary proceeding to avoid the debtor's transfer to church under 11 U.S.C.S. § 548 and to recover the value of the transfer from the church under 11 U.S.C.S. § 550(a)(1). The parties filed cross-motions for summary judgment.

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Consumer opinion summary, case decided on July 17, 2013 , LexisNexis #0813-022

Infinity Real Estate Invs. LLC v. Roach (In re J.T. Real Estate Invs. LLC)

Ruling
Trustee could recover from lienholders whose actions were part of "washing" of fraudulent transfers through third parties.
Issue(s)
Could trustee sell recovered property that had been fraudulently transferred and then liened and assigned to an entity with same ownership as debtor?

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Commercial opinion summary, case decided on June 25, 2013 , LexisNexis #0913-092

Samson v. Western Capital Partners LLC (In re Blixseth)

Ruling
Guaranty executed within two years of petition date while debtor was insolvent for less than reasonably equivalent value could be avoided as fraudulent.
Procedural posture

Plaintiff chapter 7 trustee filed an adversary proceeding against defendant Colorado limited liability company ("LLC"), seeking a determination that he could avoid a guaranty a chapter 7 debtor gave the LLC on a loan it made to the debtor's son, could recover payments and property the LLC received to repay the loan, and could recover a penalty under Montana law because the LLC charged a usurious rate of interest. The case was tried to the court.

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Consumer opinion summary, case decided on March 18, 2013 , LexisNexis #0413-056

Pyfer v. Josantos Construction (In re National Pool Constr. Inc.)

Ruling
Prepetition check honored postpetition was an unauthorized, avoidable transfer.
Procedural posture

In a previous order, the court found that payments to defendant did not constitute a preference under 11 U.S.C.S. § 547 and denied summary judgment on that basis and dismissed the complaint. The court vacated the dismissal and addressed the remaining counts of the complaint, which included avoidance and recovery of a postpetition transfer under 11 U.S.C.S. §§ 549 and 550 and disallowance of any claim by defendant under 11 U.S.C.S. § 502(d).

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Commercial opinion summary, case decided on March 08, 2013 , LexisNexis #0413-057

Cage v. GDH Intl Inc. (In re Great Gulfcan Energy Tex. Inc.)

Ruling
Trustee could not avoid transfer by initial transferees to subsequent transferees who took title in good faith.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant transferee of real property seeking to recover the value of the property which a bankruptcy debtor transferred to its former principal for no consideration, who then transferred the property to the transferee in partial satisfaction of a judgment. The trustee and the transferee cross-moved for summary judgment.

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Commercial opinion summary, case decided on March 08, 2013 , LexisNexis #0413-058

Field v. Lindell (In re Mortgage Store Inc.)

Ruling
Debtor's sole principal and president who performed under purchase agreement and exercised dominion over funds was an initial transferee.
Procedural posture

After the court ruled that a transfer was fraudulent under both the Bankruptcy Code and state law, it found that unresolved questions of fact precluded a finding that plaintiff, a chapter 7 trustee, could recover the transfer pursuant to 11 U.S.C.S. § 550(a) from defendant transferee. The trustee filed a supplemental motion for summary judgment regarding the transferee's status as an initial or subsequent transferee.

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Commercial opinion summary, case decided on September 27, 2012 , LexisNexis #1212-055

Meoli v. Huntington Natl Bank (In re Teleservices Group Inc.)

Ruling
Transfers to bank intended to defraud equipment finance creditor avoided as fraudulent.
Procedural posture

Plaintiff trustee sued defendant bank to recover more than $72 million dollars in transfers the bank received either directly from the debtor or indirectly through a related company. The trustee moved for summary judgment.

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Commercial opinion summary, case decided on March 30, 2012 , LexisNexis #0512-070

MC Asset Recovery LLC v. Commerzbank (In re Mirant Corp.)

Ruling
Debtor in possession had standing to avoid guaranty and funds paid thereunder as a fraudulent transfer.
Procedural posture

Plaintiff, as debtor-in-possession, sued defendants to avoid a guaranty and to recover the funds debtor paid pursuant to the guaranty. The District Court for the Northern District of Texas denied defendants' motion to dismiss based on plaintiff's alleged lack of standing, and subsequently granted summary judgment for defendants. Both sides appealed.

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Court :
Judge or Jurisdiction information not available
Commercial opinion summary, case decided on March 20, 2012 , LexisNexis #0412-070

Redmond v. NCMIC Fin. Corp. (In re Brooke Corp.)

Ruling
Allegedly fraudulent transfer of operating expenses and loan payments to others could not be recovered from lender that allegedly benefitted.
Procedural posture

Chapter 7 trustee sought to avoid allegedly fraudulent transfers made by the debtors and to recover the value thereof from defendant, a finance corporation and lender (lender). As to one of the counts, the lender moved for summary judgment under Fed. R. Civ. P. 56, made applicable by Fed. R. Bankr. P. 7056, on the basis that it could not be liable within the meaning of 11 U.S.C.S. § 550(a)(1).

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Commercial opinion summary, case decided on March 13, 2012 , LexisNexis #0413-023