Date of Decision:
February 24, 2010
Whether Defendant was entitled to summary judgment on Trustee-Plaintiff's complaint to avoid under 11 U.S.C. § 547(b) a preferential transfer of a vehicle where Defendant argued the undisputed material facts showed the subject transfer was a contemporaneous exchange for new value or was made within the ordinary course of the debtor's business?
Defendant's motion was denied. Defendant was estopped from arguing the transfer was a contemporaneous exchange for new value under § 547(c)(1) or made within the ordinary course of the debtor's business or financial affairs under § 547(c)(2) where Defendant had earlier represented to state licensing officials the transfer was a gift.
Full Bankruptcy Court Decision: