Flooring Systems, Inc v. Chow (In the matter of Poston)
- Summarized by Craig Geno , Craig M Geno PLLC
- 10 years 4 months ago
- Citation:
- Flooring Systems, Inc. v. Michelle Chow No. 13-41050
- Tag(s):
-
- Ruling:
- Preference period began when bank received a certified copy of a state court receivership order and turned over funds in an account to a creditor as a result of being served with the order. The preference period did not begin when the receiver was appointed. Accordingly, the transfer at issue was made within the 90 day preference period and was avoidable.
- Procedural context:
- Preference defendant appeals from adverse rulings in the bankruptcy and district courts.
- Facts:
- Appellant Flooring Systems obtained a state court order appointing a receiver on October 26, 2007. Appellant did not serve a bank which held funds of Poston (who ultimately became a Chapter 11 debtor) with a certified copy of the receivership order (a requirement of Texas Law) until November 20, 2007. The bank involved turned over funds in Poston's account to the Appellant as a result of the order. Poston filed a petition under Chapter 11 on January 31, 2008. The case was converted to a chapter 7 case on November 17, 2008. Ms. Chow was appointed trustee in early 2010 and brought the adversary proceeding, seeking to recover the transferred funds as a preferential transfer.
- Judge(s):
- Davis, Smith and Benavides
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