Stubbe v. Rivera Roura (In re Hernández Arvelo)

OPINION AND ORDER

SARA E. de JESUS, Bankruptcy Judge.

The question in this proceeding is whether the Trustee can avoid Debtor’s prebank-ruptcy sale of his milk quota to Mr. Ernesto Rivera Roura pursuant to the “strong arm” clause of the U.S. Bankruptcy Code, 11 U.S.C. Section 544(a), because under applicable state law delivery was insufficient to pass title.

The production and sale of milk in Puerto Rico has been regulated since 1979, by Law No. 34 approved on June 11, 1957, as amended, 5 Laws of P.R.Ann., Sections 1092-1125, and by the various rules and regulations approved pursuant to this…