Simon v. Eichstadt Bros. (In Re Biniecki Bros.)

MEMORANDUM OPINION

STANLEY B. BERNSTEIN, Bankruptcy Judge.

Introduction:

The Biniecki Brothers formed a partnership to operate a grain elevator in Livingston County. The partnership failed and its Chapter 11 case filed on August 19, 1982, was converted to Chapter 7. The trustee has filed over fifty preference complaints against farmers who had traded with the partnership. This is the first of these adversary proceedings to be tried, and the outcome of this proceeding will probably establish the pattern of settlement or prosecution for the remaining proceedings.

A proper determination of the…