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INTRODUCTION

Sigma Micro Corporation (“Sigma”) appeals from a grant of summary judgment in favor of the responsible individual for a group of consolidated debtors avoiding several payments made to Sigma. Sigma asserts that: (1) the bankruptcy court who issued the summary judgment lacked the jurisdiction to do so and (2) even if jurisdiction was proper, summary judgment should not have been granted. We affirm in part, reverse in part, and remand.

BACKGROUND

On January 23, 1998, Sigma entered into a binding license agreement (“the Agreement”) with L & H Vitamins, Inc. (“L & H”). The basic terms of the Agreement called for Sigma to provide L & H with critical hardware and software, as well as routine maintenance and support services. In turn, the Agreement obligated L & H to pay Sigma a one-time set fee for the hardware and software, as well as ongoing fees for its maintenance and support services. Sigma was to bill L & H by invoice and L & H was to pay Sigma as soon as the relevant invoice was received, otherwise an interest charge would apply.

In addition to these basic terms, Sigma and L & H also agreed all rights and obligations under the Agreement would be binding not only…