Prudential Ins. Co. of America v. Nelson

SIMONS, Circuit Judge.

The trustee in bankruptcy of the Chickamauga Trust Company sued to recover from the appellant on the ground that it was a voidable preference, a sum of money paid to it by the bankrupt within four months of adjudication, in diminution of the bankrupt’s estate while the bankrupt was insolvent and under circumstances giving rise to a reasonable belief that it would effect a preference. From a decree adjudging the payment to have been preferential, ordering it set aside, and awarding the trustee full recovery with interest, the defendant appeals.

Why recovery was sought by…