Opinion
Case No. 6:03-bk-00299-KSJ Adversary No. 6:11-ap-00007-KSJ
08-25-2020
In re Advanced Telecommunication Network, Inc., Debtor. Advanced Telecommunication Network, Inc., Plaintiff, v. Arnstein & Lehr LLP, Defendant.
Chapter 11 ORDER DENYING PLAINTIFF'S MOTION FOR PARTIAL SUMMARY JUDGMENT
Plaintiff, Advanced Telecommunication Network, Inc., seeks partial summary judgment that Defendant, Arnstein & Lehr LLP, had knowledge of the voidability of the challenged transfer and, therefore, cannot assert defenses under § 550(b) of the Bankruptcy Code.
Doc. No. 82. Defendant filed a Response to Plaintiff's Motion for Partial Summary Judgment. Doc. No. 91.
All references to the Bankruptcy Code refer to 11 U.S.C. §§ 101 et. seq.
Section 550(b) protects transferees from liability for an avoided transfer when the transferee accepts the transfer "for value . . . in good faith, and without knowledge of the voidability of the transfer avoided." Here, Defendant, a law firm, represented Daniel and David Allen in a related adversary proceeding that avoided a $6 million transfer. The Allens paid Defendants for their legal work. Plaintiff contends Defendant was paid from and with full knowledge of the voidability of this $6 million transfer. Defendant contends that a genuine issue of material fact remains as to the source of the payments made by the Allens and whether Defendant received the payments in good faith.
Adversary Proceeding 6:03-ap-00122-KSJ. --------
The Court finds there are genuine issues of material fact that preclude summary judgment as a matter of law. Accordingly, it is ORDERED that the Motion (Doc. No. 82) is DENIED.
ORDERED. Dated: August 25, 2020
/s/_________
Karen S. Jennemann
United States Bankruptcy Judge
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Attorney, Jason Baruch, is directed to serve a copy of this order on all interested parties who are non-CM/ECF users and file a proof of service within three days of entry of the order.