United States Fourth Circuit

In a bankruptcy case, where the trustee for the bankruptcy estates of the debtors filed an action to avoid and recover certain payments made by debtor-mortgage company to defendant-bank, the bankruptcy court's determination that defendant-bank proved the affirmative defense of good faith is affirmed, where: 1) the bankruptcy court and the district court correctly applied the objective good-faith standard in determining that the bank employees' testimony provided competent objective evidence that satisfied the bank's burden of proving its affirmative defense under 11 U.S.C. section 548(c); and 2) the bankruptcy court did not clearly err in holding that the bank accepted the payments from FMI in good faith.

Appellate Information

• Decided 02/21/2014
• Published 02/21/2014

Judges

• KEENAN

Court

• United States Fourth Circuit

Counsel