In re Mississippi Valley Livestock, Inc., No. 13-1377, 2014 U.S. App. LEXIS 4663 (7th Cir. Mar. 12, 2014)

(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).

CALT does not provide legal advice. Any information provided on this website is not intended to be a substitute for legal services from a competent professional. CALT's work is supported by fee-based seminars and generous private gifts. Any opinions, findings, conclusions or recommendations expressed in the material contained on this website do not necessarily reflect the views of Iowa State University.

RSS​ Facebook Twitter