Houdaille-Duval-Wright Co. v. Congdon

McNULTY, Judge.

This is an action filed by a trustee in bankruptcy, pursuant to § 70(e) of the Bankruptcy Act,1 to recover monies paid, it is alleged, from a “preferred creditor.” Final summary judgment was entered in favor of the trustee and the creditor appeals. We reverse.

It undisputedly appears that the bankrupt was a corporation engaged as a general construction contractor; and, while insolvency was imminent in December, 1966, it made a payment to appellant Houdaille who was at that time an unpaid subcontractor on a prior job of the bankrupt. It is this payment which is allegedly…