Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

In re Archway Cookies LLC

United States District Court, D. Delaware

November 20, 2013

IN RE: ARCHWAY COOKIES LLC, et al., Debtors.
v.
DETROIT FORMING, INC., Defendant. JEOFFREY L. BURTCH, CHAPTER 7 TRUSTEE, Plaintiff, JEOFFREY L. BURTCH, CHAPTER 7 TRUSTEE, Appellant,
v.
DETROIT FORMING, INC., Appellee

Chapter 7. Bankr. Case No. 08-12323-CSS (Jointly Administered). Adv. Pro. No. 09-51429-CSS.

For Jeoffrey L. Burtch, Chapter 7 Trustee, Appellant: Mary Claire McCudden, LEAD ATTORNEY, Robert W. Pedigo, Cooch & Taylor, Wilmington, DE.

For Detroit Forming Inc., Appellee: Ian Connor Bifferato, LEAD ATTORNEY, Bifferato LLC, Wilmington, DE; Kevin Grant Collins, Barnes & Thornburg LLP, Wilmington, DE.

OPINION

Page 727

MEMORANDUM ORDER

Leonard P. Stark, UNITED STATES DISTRICT JUDGE.

At Wilmington this 20th day of November, 2013, this matter coming before the Court upon the appeal (the " Appeal" ) (D.I. 1) of Jeoffrey L. Burtch, Chapter 7 Trustee (the " Trustee" ) from the September 1, 2010 Order Granting Detroit Forming Inc.'s Motion for Summary Judgment (the " Order" ) (D.I. 1) and accompanying Opinion (the " Opinion" )[1] entered by the Honorable Christopher S. Sontchi, U.S.B.J., and having considered the parties' papers submitted in connection therewith;

IT IS ORDERED that the Bankruptcy Court's Order is AFFIRMED for the reasons that follow:

Background.[2] On October 6, 2008, Archway Cookies LLC and Mother's Cake & Cookie Co. (collectively, the " Debtors" ) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (the " Bankruptcy Court" ), Bankr. Case No. 08-12323-CSS. On January 9, 2009, the Debtors converted their cases to ones under Chapter 7; Jeoffrey L. Burtch was appointed as the Chapter 7 trustee.

On July 15, 2009, the Trustee instituted an adversary proceeding in the Bankruptcy Court, Adv. Pro. No. 09-51429-CSS, against Defendant/Appellee, Detroit Forming, Inc. (" DFI" ), pursuant to 11 U.S.C. § § 547 and 550. By his adversary action, the Trustee sought to avoid and recover as preferential six transfers totaling $180,648.17 made by the Debtors to DFI. The Trustee ultimately acknowledged that DFI had provided unpaid new value to the Debtors in the amount of $111,973.89, leaving the parties' dispute limited to whether the remaining $68,674.28 [3] of transfers to DFI were protected by the ordinary course of business defense set forth in § 547(c)(2)(A).

DFI moved for summary judgment that the preferential transfers, if any, were not avoidable as having been made in the ordinary course of business. The Bankruptcy Court determined that the transfers were made " in the ordinary course of business or financial affairs of the debtor and the transferee," pursuant to 11 U.S.C. § 547(c)(2)(A), and granted summary judgment to DFI. ( See D.I. 1 Exs. A & B)

The Trustee filed a Notice of Appeal of the Order with the Bankruptcy Court on or about September 13, 2010 (the " Notice of Appeal" ). ( See D.I. 2) The Notice of Appeal was entered on the docket of this Court on October 20, 2010. (D.I. 4)

Contentions. Appellant contends that the Bankruptcy Court erred: (i) " in not applying the proper legal standard for granting summary judgment by not drawing all reasonable inferences, as to material facts, in favor of the Trustee as the ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.