Case Name:
Davis v. Painter (In re Palmer)
Judge:
Judge Clark
Date:
Jul-31-1985
Case Number(s):
83PC-3110
Status:
UNPUBLISHED
Body:
Debtors operated a restaurant, which they sold within 90 days of filing their chapter 7 petition, and used some of the proceeds to pay the restaurant's landlord for past due rent. On stipulated facts, the court found that every one of the elements of a preferential transfer under 11 U.S.C. § 547(b) was met by the transfer to landlord. The court then considered whether the transfer was covered by an exception for payments made in the ordinary course of business, set forth in § 547(c), on which issue landlord had the burden of proof. The court ruled that, as landlord failed to establish 3 out of 4 ordinary course elements, trustee was entitled to recover the payment.
Internal Ref:
Opinion 165
File: