Krommenhoek v. Bankruptcy Estate of Pfankuch Food Services, Inc. Ex Rel. Gugino (In Re Pfankuch)

MEMORANDUM OF DECISION

JIM D. PAPPAS, United States Bankruptcy Judge.

Introduction

A bankruptcy trustee’s action seeking to avoid a preferential transfer to a creditor is familiar fare for this Court. Typically, the trustee and preferred creditor differ on whether the elements of the trustee’s claim required by the Code have been satisfied, or whether perhaps one or more of the several defenses afforded to the creditor may apply.

But this is not an ordinary contest. Indeed, the creditor is not even a party to this litigation, and has instead voluntarily repaid the alleged preference. Rather, this…