Summary

In yet another straight-forward 15 page decision signed April 18, 2016, Judge Walrath of the Delaware Bankruptcy Court granted a defendant’s motion to dismiss a preference complaint, but granted the plaintiff leave to amend. Judge Walrath’s opinion is available here (the “Opinion”).  Numerous posts on this blog discuss other opinions issued by the Delaware

Introduction

The debtor in the Friedman’s bankruptcy recently filed preference complaints against various defendants.  Days later,  Charles Stanziale, the liquidating trustee in the Custom Foods bankruptcy, filed preference complaints against various parties as well.  The plaintiffs in both actions seek the avoidance and recovery of alleged preference payments under sections 547 of the United States