O'Neil v. Orix Credit Alliance, Inc. (In Re Northeastern Contracting Co.)

INTRODUCTION

ARTERTON, District Judge.

Trustee John O’Neil, plaintiff-appellee in this case, filed a preference action against creditor Orix Credit Alliance in 1995. At issue were two checks for $6,000 that Debtor Northeastern Contracting Company (Northeastern) transferred to Orix. The checks were paid to Northeastern for construction services rendered under a contract with Industrial Construction Company (ICCI) (a third party). The bankruptcy court concluded that these payments were avoidable preferences that could be recovered pursuant to 11 U.S.C. § 547(b) and § 550. Orix has appealed on…