O'Halloran ex rel. Liquidating Trust of Teltronics, Inc. v. Harris Corp. (In re Teltronics, Inc.)

FINDINGS OF FACT AND CONCLUSIONS OF LAW

Michael G. Williamson, United States Bankruptcy Judge

Teltronics, the Debtor in this bankruptcy case, had the right to block the sale of a patent portfolio owned by Harris Corporation. Teltronics gave up that blocking right for $5,000. Five days later, Harris Corporation sold the patent portfolio to RPX Corporation for $12 million. The Court must decide whether the transfer of Teltronics’ blocking right was constructively fraudulent and whether Harris and RPX Corporation are hable for the value of the transfer.

The Court concludes that the Plaintiff, the…