Preferences

An Order Directing Specific Performance Means the Contract Is Not Executory

Idaho’s Judge Myers rules that an order directing specific performance is not a transfer and cannot be a preference.

Court :

9th Circuit

Montana

Contractor’s Inchoate Lien Defense Defeats a Preference, Most Courts Hold

Fairness and economic realities persuade Judge Jernigan to insulate a contractor from a preference claim.

Court :

5th Circuit

Texas

Texas Northern District

Earmarking Seems to Be a Dead Letter in the Tenth Circuit

BAP says the Tenth Circuit adopts legal fictions to create preferences.

Court :

10th Circuit

Fifth Circuit Muses on the Split over Pleading Standards for Fraudulent Schemes

Fifth Circuit generally holds that heightened pleading standards in Rule 9(b) do not apply to claims that don’t rely on fraudulent activity, even though the overall scheme may be fraudulent.

Court :

5th Circuit

One Preference Won’t Prevent Another from Being a Preference

A joint check agreement signed in the preference window is a preference, two Virginia judges say.

Court :

4th Circuit

Virginia

Virginia Eastern District

Survivor in a Merger Can’t Sue for a Preference Made by a Dissolved Entity

Plain language of Section 547 defeated what could have been an easily avoided preference.

Court :

4th Circuit

North Carolina

North Carolina Eastern District

‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party

Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.

Court :

3rd Circuit

Pennsylvania

Pennsylvania Eastern District

Preference Law Perpetuates Preferences in Chapter 11

Sept 2019

Bankruptcy Code

547

Topic Tags

Asset Sales

Bankruptcy Litigation

Preferences

Business Reorganization

Small Business

Unsecured Trade Creditors

Tardy Recordation of a Mortgage Not Salvaged by Relation-Back Arguments

A mortgage recorded more than 30 days after closing resulted in a transfer within the preference window.

Court :

11th Circuit

Georgia

Georgia Northern District

Using the Ponzi Scheme Presumption? Not So Fast!

Bankruptcy Code

Topic Tags

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