Ute Mesa Lot 1, LLC v. First-Citizens Bank & Trust Co.

KELLY, Circuit Judge.

Plaintiff-Appellant Ute Mesa Lot 1, LLC, (“Ute Mesa”) appeals from a bankruptcy court order denying it relief under 11 U.S.C. § 547(b). The narrow issue is whether a notice of lis pendens filed in Colorado can constitute a preferential transfer under 11 U.S.C. § 547(b). Both the bankruptcy and district courts held that a lis pendens is not a transfer because it merely serves as notice of pending litigation. Exercising jurisdiction under 28 U.S.C. § 158(d)(1), we affirm.

Background

Ute Mesa is a real estate developer in Colorado. In October 2007, it received a $12 million…