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Burtch v. Revchem Composites, Inc. (In re Sierra Concrete Design, Inc.)
United States Bankruptcy Court for the District of Delaware
463 B.R. 302 (2012)
- Written by Alex Ruskell, JD
Facts
Jeffrey Burtch (plaintiff) was the Chapter 7 trustee for Sierra Concrete Design, Inc. (Sierra). Burtch sued Revchem Composites, Inc. (Revchem) (defendant) to recover payments Sierra made in the 90 days prior to filing bankruptcy. Revchem filed for summary judgment, arguing that it was not required to return the payments because the payments were made in the ordinary course of business and because the payments advanced new value to Sierra. Sierra and Revchem’s relationship prior to the 90-day preference period consisted of 17 checks covering approximately 68 invoices over an 11-month period. However, some of Sierra’s payments did advance new value to Sierra.
Rule of Law
Issue
Holding and Reasoning (Sontchi, J.)
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