04 B 45177, 06 A 01812
Creditor trustee filed a complaint to recover five alleged transfers made to the defendant from the debtor two months prior to the bankruptcy case. Three of the transfers were disposed via summary judgment for the defendant. A hearing was held regarding the remaining two transfers. The Court found that the remaining two transfers were made while the defendant was insolvent. The defendant asserted that the transfers were made in the ordinary course of business. This was rejected because the defendant only offered the testimony of its president who could not testify to the industry standard, and therefore, was not an expert witness. The defendant then argued that the transfers were made as part of a lease that was assumed post-petition by the debtor. The Court agreed and entered judgment for the defendant on the two remaining transfers base on the Seventh Circuit’s ruling in In re Superior Toy & Mfg. Co., Inc., 78 F.3d 1169 (7th Cir. 1996).