Sulmeyer
Sulmeyer v. Suzuki (In re Grand Chevrolet, Inc.)
Opinion
Lead Opinion
Farris, J.
Opinion by Judge FARRIS
Trustee Irving Sulmeyer appeals the granting of summary judgment to Pacific Suzuki. The district court held that transfers from Grand Motors, Inc. to Pacific were not voidable as preferences because they fell within the ordinary course of business exception, 11 U.S.C. § 547 (c)(2), and the contemporaneous exchange exception, 11 U.S.C. § 547 (c)(1).
The trustee originally filed his complaint in the bankruptcy court. The bankruptcy court had jurisdiction pursuant to 28 U.S.C. §§ 157 (b) and 1334(a). The district court, which withdrew the reference to the bankruptcy court, had jurisdiction pursuant to 28 U.S.C. § 157 (d). We have jurisdiction under 28 U.S.C. § 1291 .
I. BACKGROUND
The debtor, Grand Motors, was in the business of buying new cars from dealers such as Pacific Suzuki and reselling them to consumers as used. The debtor filed a voluntary bankruptcy petition on August 8,1988. 1 The trustee seeks to avoid three transfers from Grand Motors to Pacific Suzuki as preferences under § 547(b) of the Bankruptcy Code, 11 U.S.C. § 547 (b).
The transfers all involved “automobile purchase drafts.” Automobile purchase drafts are similar to checks and are…