Contemporary Industries Corporation v. Frost
United States Court of Appeals for the Eighth Circuit
564 F.3d 981 (2009)
- Written by Ryan Hill, JD
Facts
Contemporary Industries Corporation (Contemporary) (debtor) was acquired in a leveraged buyout. The Frosts (defendants) were Contemporary shareholders and received $26,000,000 for their stock. The payments for the stock were first made from Contemporary to its escrow agent, First National Bank of Omaha (First National). First National then distributed the money to the Frosts. Contemporary later filed for bankruptcy. Contemporary and its unsecured creditors sought to avoid the $26,000,000 paid to the Frosts. The Frosts alleged that the payments were exempt from avoidance under the settlement-payment exception found in § 546(e) of the bankruptcy code. The bankruptcy court granted summary judgment in favor of the Frosts, and the district court affirmed.
Rule of Law
Issue
Holding and Reasoning (Beam, J.)
What to do next…
Here's why 807,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 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.
