(S.D. Ind. Mar. 28, 2016)
The district court affirms the bankruptcy court’s judgment that found the creditor established a new value defense to the trustee’s preference claim. The debtor made payments to the creditor on a promissory note during the preference period. The creditor continued to provide services to the debtor during the preference period, and it billed for those services on a monthly basis. The total value of the services exceeded the debtor’s payments. The court holds that the bankruptcy court correctly applied the per diemmethod of allocation of new value credit under the facts of this case, and the new value defense applied. Opinion below.
Attorneys for Trustee: Kilpatrick Stockton LLP, Colin M. Bernadino, Michael D. Langford, Todd C. Meyers, Rubin & Levin, P.C., Elliott D. Levin, James T. Young
Attorneys for Creditor: Stinson Morrison Hecker LLP, Mark S. Carder, Bingham McHale LLP, Thomas C. Scherer