Legal Opinion

O'Rourke v. Coral Construction, Inc. (In Re E.R. Fegert, Inc.)

United States Bankruptcy Appellate Panel for the Ninth Circuit

Decided August 8, 1988No. BAP EW-87-1096, 1210-MeASJPublishedCited by 18 opinions

1Opinion of the Court

MEYERS, Bankruptcy Judge:

I

This case presents the issue of whether the Debtor’s payments to two subcontractors constitute voidable preferences where in exchange, the subcontractors released their unsecured claims against the Debtor as well as their claims against a surety company. The Bankruptcy Court found that the Debtor’s payments were exceptions under § 547(c)(1) of the Bankruptcy Code (“Code”) and therefore were not voidable. We AFFIRM.

II

BACKGROUND

In May 1981, the United States Department of Transportation entered into a contract with the Debtor for the construction of 4.6 miles of a…

2Cases cited21 opinions

  1. Pearlman v. Reliance InsuranceSupreme Court of the United States · 1962
  2. In Re Bullion Reserve of North America, a California Corporation, Curtis B. Danning, Chapter 7 Trustee v. Theodore P. BozekCourt of Appeals for the Ninth Circuit · 1988
  3. In Re Computer Communications, Inc., Debtor. Computer Communications, Inc. v. Codex CorporationCourt of Appeals for the Ninth Circuit · 1987
  4. The National Shawmut Bank of Boston v. New Amsterdam Casualty Co., Inc.Court of Appeals for the First Circuit · 1969
  5. Hansen v. Finn (In Re Curry & Sorensen, Inc.)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1986

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3Cited by18 opinions

  1. In Re E.R. Fegert, Inc., Debtor. Dan O'rourke, Trustee v. Seaboard Surety Company Coral Construction Company, Inc. Shotwell Paving CompanyCourt of Appeals for the Ninth Circuit · 1989
  2. Sierra Steel, Inc. v. S & S Steel Fabrication (In Re Sierra Steel, Inc.)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1989
  3. Dye v. Rivera (In Re Marino)United States Bankruptcy Appellate Panel for the Ninth Circuit · 1996
  4. Lubman v. C.A. Guard Masonry Contractor, Inc. (In Re Gem Construction Corp. of Virginia)United States Bankruptcy Court, E.D. Virginia · 2000
  5. Cocolat, Inc. v. Fisher Development, Inc. (In Re Cocolat, Inc.)United States Bankruptcy Court, N.D. California · 1995

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