New Cases - Week of May 5, 2008

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May 9, 2008
Case	Court	Holding

In re Straightline Investments, Inc.
(DBN Subscription Required)

9th Cir.

While "diminution of the estate" is required to support an avoidance recovery under sections 547 or 548, no such requirement exists with respect to liability under section 549.

Thus, a transferee who purchased receivables from an estate out of the ordinary course of business was not entitled to defend against a section 549 suit by based upon the fact that he paid the estate more then the receivables were worth.

May 7, 2008
Case	Court	Holding

In re Slatkin
(DBN Subscription Required)

9th Cir.

Summary judgment in favor of bankruptcy trustee, avoiding under 11 U.S.C. section 548(a) and California Civil Code section 3439.04(a) certain transfers made by the debtor during his operation of a Ponzi scheme, is affirmed where: 1) the bankruptcy court did not abuse its discretion in denying appellants-investors' motion for a continuance to conduct further discovery; 2) investors' right to a jury trial was not violated by the grant of summary judgment; 3) the bankruptcy court properly determined that debtor acted with the actual intent to "hinder, delay, or defraud" his creditors; 4) a determination that debtor was not a "stockbroker" under the Bankruptcy Code was proper; and 5) prejudgment interest was properly awarded.