Quimbee logo
DMCA.com Protection Status
From our private database of 15,900+ case briefs...

Boyer v. Crown Stock Distribution, Inc.

United States Court of Appeals for the Seventh Circuit
587 F.3d 787 (2009)


Crown Unlimited Machine, Inc. (Old Crown) (defendants) was a machinery company. Old Crown agreed to sell all of its assets to Kevin Smith for $6,000,000. Smith formed a new corporation, also called Crown Unlimited Machine, Inc. (New Crown) (debtor). New Crown paid Old Crown with $3,100,000 in cash and a $2,900,000 promissory note. Both the bank loan and the note were secured by all of Old Crown’s assets, which meant that after the transaction, New Crown’s assets would be doubly encumbered. After the closing, Old Crown distributed the $3,100,000 cash payment to its shareholders and ceased operations. New Crown failed and filed for liquidation under chapter 7 of the bankruptcy code. The trustee (plaintiff) filed an adversary proceeding seeking to to avoid the sale of Old Crown as a constructive fraudulent transfer and recover the purchase price on behalf of New Crown’s creditors. The bankruptcy court ruled that the transaction was a constructive fraudulent conveyance, and the district court affirmed. The parties associated with Old Crown appealed, arguing that the transaction was legitimate and that the company failed for reasons unrelated to the structure of the transaction.

Rule of Law


Holding and Reasoning (Posner, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 342,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 15,900 briefs, keyed to 215 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.