Legal Opinion
Rushton v. SMC Electrical Products, Inc. (In re C.W. Mining Co.)
Bankruptcy Appellate Panel of the Tenth Circuit
Decided November 5, 2013No. BAP No. UT-13-026; Bankruptcy No. 08-20105; Adversary No. 10-02758PublishedCited by 3 opinions
1Opinion of the Court
*638OPINION
KARLIN, Bankruptcy Judge.
This case poses the question, “how ordinary is ordinary?” The ordinary course of business defense, set out in 11 U.S.C. § 547(c)(2)(A), protects the creditor of a debtor who has filed bankruptcy from an action by a trustee to recover, as a preference, payments made by the debtor prior to bankruptcy as long as the creditor can meet two requirements. First, the creditor must show that the alleged preferential payment was made “in payment of a debt incurred by the debtor in the ordinary course of business” of the debtor and the creditor. The creditor must then…
2Cases cited15 opinions
- Barnhill v. JohnsonSupreme Court of the United States · 1992
- In Re M & L Business Machine Company, Inc.Court of Appeals for the Tenth Circuit · 1996
- Connolly v. Harris Trust Co.Court of Appeals for the Tenth Circuit · 2002
- In Re Hedged-Investments Associates, Inc., Debtor. Harvey Sender, Trustee v. The Nancy Elizabeth R. Heggland Family Trust, and Radoy W. HegglandCourt of Appeals for the Tenth Circuit · 1995
- In Re Marlene M. Finn, Debtor. Daniel F. Gosch, Trustee of the Estate of Marlene M. Finn v. Donald M. BurnsCourt of Appeals for the Sixth Circuit · 1990
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3Cited by3 opinions
- Ciesla v. Harney Management Partners (In re KLN Steel Products Co.)United States Bankruptcy Court, W.D. Texas · 2014
- Goodman v. Credit Union (In re Gaines)United States Bankruptcy Court, N.D. Georgia · 2013
- Redmond v. CJD & Associates, LLC (In re Brooke Corp.)United States Bankruptcy Court, D. Kansas · 2015