LaRose v. Crosby & Son Towing, Inc. (In Re Dick Henley, Inc.)

OPINION AND ORDER UPON TRUSTEE’S MOTION FOR SUMMARY JUDGMENT

WESLEY W. STEEN, Bankruptcy Judge.

I. FACTS

This case comes before the court on a motion for Summary Judgment. The issue is whether a Debtor/Contractor’s payment to a Creditor/Subcontractor can be a preferential transfer when, on account of that payment, the Creditor/Subcontractor lost its Private Works Act lien (e.g. mechanic’s lien) against the Owner. The facts agreed for these purposes are essentially those stated in the defendant’s memorandum of authorities:

“The defendant, Crosby & Son Towing, Inc. [the Creditor/Sub] did certain…