New Cases For the Week of June 30, 2003

Major Paint Company v. United States (DBN Subscription Required)	Fed. Cir.	Because capitalized bankruptcy costs (i.e., costs expended on the hiring of outside professionals during bankruptcy proceedings) incurred by a debtor did not arise under a federal law, did not qualify for the special ten-year net operating loss carryback provided in I.R.C. § 172(b)(1)(C). I.R.C. § 172 (2000).
In re Personal and Business Insurance Agency (DBN Subscription Required)	3rd Cir.	In a fraudulent transfer action under section 548, the invocation of the doctrine of imputation against a trustee should not be allowed when a bad actor has been removed and the defense is serving only to bar the claims of an innocent successor
Kleven v. Household Bank, F.S.B. (DBN Subscription Required)	7th Cir.	Although a history of dealing between a debtor and creditor is certainly the strongest factor supporting a determination that the business between a debtor and an alleged preference creditor is ordinary for preference avoidance purposes, such a history is not absolutely necessary in every case. In some instances, the ordinary course of business may be established by the terms of the parties' agreement, until that agreement is somehow or other modified by actual performance. In the absence of modifying behavior, there is no reason why a court should not look to the terms of the parties' agreement in order to determine their ordinary course of business.