United States Eighth Circuit

In a bankruptcy appeal brought by the trustee, claiming that a check received by appellee from debtor in replacement of a dishonored check was a payment made within the ninety-day period prior to the filing of a bankruptcy and was thus a prohibited preference under the Bankruptcy Code section 547(b), a ruling against trustee is affirmed where the replacement check resulted in the release of appellee's bank's security interest in collateral, and thus it constituted a contemporaneous exchange for new value falling within an exception to the trustee's avoidance powers.

Appellate Information

• Decided 09/24/2008
• Published 09/24/2008

Judges

• ERICKSON, District Judge., Before COLLOTON and SHEPHERD, Circuit Judges, and ERICKSON, District Judge.

Court

• United States Eighth Circuit

Counsel

• For Appellant:
  
• Justin Peter Weinberg, argued, Michael S. Dove, Mary Kay Mages, on the brief, New Ulm, MN, for appellant.


• For Appellees:
  
• David L. Johnson, argued, Fargo ND, for appellee.