Rainbow Trust v. Moulton Construction, Inc. (In Re Rainbow Trust)

MEMORANDUM DECISION ON MOTION TO RECONSIDER GRANTING OF SUMMARY JUDGMENT

FRANCIS G. CONRAD, Bankruptcy Judge.

Before us 1 is a motion to reconsider our order granting summary judgment to Moul-ton and awarding it a holdback amount of $159,250 plus interest. Rainbow argues that the court has made an error of law which, if corrected, would require Moulton to turn over funds previously distributed to it as a secured creditor, rather than entitle it to the holdback. We concede that we made an error of law but hold nonetheless that Moul-ton is entitled to the holdback amount, plus interest, as a…