Tag Archives: Bankruptcy Court for the District of Delaware

Revised on Remand: Judge Walrath Reduces Defendant’s New Value Defense and Awards the Trustee Prejudgment Interest in Remanded Proceeding

By Gregory J. Flasser, Esq.

On March 29, 2016, Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware (the “Court”) issued an opinion reducing the new value defense of Prudential Real Estate and Relocation Services, Inc., and Prudential Relocation, Inc. (collectively, “Prudential”) and awarding the chapter 7 trustee (the “Trustee”) prejudgment interest in Prudential Real Estate v. Burtch (In re AE Liquidation, Inc.), Adv. Proc. No. 10-55543 (MFW), 2016 WL 1238848 (Bankr. D. Del. Mar. 29, 2016). Continue reading

‘Average Payment Time’ vs. ‘Range of Payment Statistics’: Judge Carey (Del.) Weighs in Favor of the Latter in In re AES Thames, LLC Preference Dispute

By Evan T. Miller, Esq.

Judge Carey recently ruled in favor of a defendant on a 547(c)(2) issue, notwithstanding that the Debtors paid the defendant more than six times later during the Preference Period than they had in the Historical Period. Continue reading

Badges of Fraud and the Imputation of Actual Fraudulent Intent – Chief Judge Shannon (Bankr. D. Del.) Issues Latest Order in Long-Running Syntax-Brillian Fraudulent Transfer Action

By Evan T. Miller, Esq.

In the latest memorandum order from SB Liquidation Trust v. Preferred Bank (In re Syntax-Brillian Corp.), Case No. 08-11407 (BLS), Adv. No. 10-51389 (BLS) (Bankr. D. Del.), an adversary proceeding that has already spawned three opinions (including one from the Third Circuit), Chief Judge Shannon denied the defendant-bank’s (“Defendant”) motion to dismiss the complaint (as amended, the “Complaint”). Continue reading

Is Denial of Receipt Enough to Contest Service Under 12(b)(5)? Must a Preference Complaint Allege More Than Recipient, Transfer Date, and Amount to Satisfy Twombly/Iqbal? Judge Sontchi Clarifies Delaware’s View

By Evan T. Miller, Esq.

Proper service and the degree of complaint detail are recurring issues in avoidance action jurisprudence.  In the United States Bankruptcy Court for the District of Delaware, at least, Judge Sontchi has provided guidance on both issues in an opinion that should be equally instructive to plaintiffs and defendants. Continue reading

Judge Sontchi Rules Preferential Transactions Were Made in the Ordinary Course of Business Notwithstanding Earlier Ruling Adverse to Defendant at Summary Judgment Stage

By Evan T. Miller, Esq.

On July 16, 2015, Judge Christopher S. Sontchi, of the United States Bankruptcy Court for the District of Delaware, issued an opinion in Burtch v. Revchem Composites, Inc. (In re Sierra Concrete Design, Inc.), No. 10-52667 (CSS), finding that Revchem Composites, Inc. (“Defendant”) established a complete defense to a preference action, utilizing the subjective “ordinary course of business” transactions exception in Bankruptcy Code section 547(c)(2) (the “OCOB Defense”). Continue reading