- Ag Docket
(debtor is in business of buying and selling livestock for slaughter and processing, and sold farmer's livestock to a buyer; before filing bankruptcy, debtor paid farmer about $900,000 for completed sales of livestock; after bankruptcy filing, bankruptcy trustee sought to recover funds paid to farmer as a preferential transfer in accordance with 11 U.S.C. Sec. 547(b); bankruptcy court and district court ruled against trustee; on appeal, court reversed; appellate court noted that further proceedings necessary to determine how much of $900,000 traceable to constructive trust in favor of farmer; debtor did not have ownership interest in farmer's cattle, but merely possessed cattle for purpose of sale and was in a bailment relationship with farmer; on remand, trial court to determine if any equitable defenses bar farmer from recovering on restitution claim; farmer did not show that all of funds paid to farmer were its property; case reversed and remanded).
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