Cailouet v. First Bank & Trust (In re Entringer Bakeries Inc.)

Pre 2005-Act: 
Pre 2005-Act
Ruling: 
Earmarking doctrine did not apply with regard to preferential transfer where debtor had complete control of funds.
Procedural posture: 
A bankruptcy court found plaintiff trustee could avoid a debtor's transfer to defendant bank as an 11 U.S.C.S. § 547(b) preference but the funds were "earmarked" for the bank (out of a new lender's loan) and thus avoidable only to the extent the estate was diminished. The district court for the Eastern District of Louisiana affirmed. The trustee appealed the application of the earmarking doctrine; both parties appealed the amount.
Issue: 
Court: 5th Circuit ( ) [ Circuit Court ]
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Commercial case opionion summary, case decided on November 06,2008, LexisNexis #1208-098