Barbour v. Bennett (In re Barbour)

MEMORANDUM-OPINION

J. WENDELL ROBERTS, Bankruptcy Judge.

The primary issue left to be decided in this case is whether Bankruptcy Code Section 550 is applicable to prevent a trustee, under subsection (b), from recovering property from a secondary transferee who takes for value, in good faith and without knowledge of the transfer avoided. After having reviewed the facts of this case, as well as the opinions of both our Court and the District Court on appeal, we conclude that Section 550 is simply not applicable in this case. Our reasoning as well as a brief restatement of the facts follows.

On…