Mitsui Manufacturers Bank v. Unicom Computer Corp.

In this appeal we are called upon to decide whether a debtor’s prepetition transfer to a creditor of money belonging to the creditor but mistakenly received by the debtor constitutes a voidable preference because the debt- or had temporary possession of the money within ninety days of the filing of its petition in bankruptcy. The Bankruptcy Appellate Panel (“BAP”) upheld the bankruptcy court’s ruling that, for purposes of bankruptcy law, the debtor’s prepetition transfer of the payment to its rightful owner constituted a voidable preference. We reverse.

FACTS AND PRIOR PROCEEDINGS

Acting as a computer equipment broker on behalf of its client, Pitney Bowes, Inc. (“Pit-ney”), Unicom Computer Corporation (“Uni-com”) arranged a computer equipment lease in early 1983 between Pitney and Mitsui Manufacturers Bank (“Mitsui”). Under the terms of the agreement worked out by Uni-com, Mitsui purchased computer equipment financed in part by the Philadelphia Savings Fund Society (“PSFS”). Mitsui then leased the equipment to Pitney for five years (i.e., between March 1983 and February 1988) at a monthly rental of $44,197. Pitney made its monthly lease payments directly to PSFS, which in turn…