Logourl black
From our private database of 14,100+ case briefs...

In re Video Depot, Ltd.

United States Court of Appeals for the Ninth Circuit
127 F.3d 1195 (1997)


Facts

Jeffrey Arlynn was the president of Video Depot, Ltd. (debtor) and controlled all of the company’s operations. Arlynn frequently gambled at the Las Vegas Hilton (Hilton) (creditor) and for years accumulated gambling debts with Hilton that he would typically pay off within a short time. In May 1990, Arlynn incurred a debt of $225,000 with Hilton and failed to pay it off. In June 1990, Video Depot purchased a cashier’s check made payable to Hilton for $65,000. Arlynn gave that check and a personal cashier’s check for $10,000 to Hilton, with both intended to be applied toward his gambling debt. Video Depot filed for bankruptcy in September 1990. The bankruptcy trustee sought to recover the proceeds of the $65,000 check as a fraudulent transfer under 550(a) of the bankruptcy code. The parties stipulated that the check was a fraudulent transfer. Hilton denied that it was the initial transferee of the funds, because Video Depot transferred the funds to Arlynn in his individual capacity before Arlynn transferred the funds to Hilton. The bankruptcy court held that Hilton was an initial transferee from whom the transfer could be recovered. The district court affirmed the bankruptcy court’s ruling, and Hilton appealed. 

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Nelson, J.)

The holding and reasoning section includes:

  • A "yes" or "no" answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

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 219,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 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.