Nolden
Nolden v. Balzer/Shopes, Inc. (In re Studio Five Designs (USA), Inc.)
Opinion
Lead Opinion
Tchaikovsky, J.
MEMORANDUM OF DECISION
Defendant Balzer/Shopes, Inc. (“Balzer”) moves for summary judgment in its favor against Plaintiff (the “Trustee”) and dismissal of the instant preference action. For the reasons stated below, the motion is granted.
SUMMARY OF FACTS
There are no material facts in dispute. The facts are as follows:
Prior to the filing of its bankruptcy petition, the debtor (the “Debtor”) was indebted to Balzer in the principal amount of $39,200.49. On March 10, 1987, Balzer filed suit in state court and obtained a temporary protective order (the “TPO”) which it served on the Debtor on the following day. The TPO prohibited the Debt- or from transferring, among other things, funds in its bank accounts and its accounts receivable. Under state law, service of the TPO on the Debtor created a lien on the Debtor’s bank accounts and accounts receivable. On April 1, 1987, a writ of attachment (the “Writ”) was issued by the state court covering the same property covered by the TPO. The Writ was levied on the Debtor’s bank account at Bank of America and on an account receivable allegedly owed by Mervyn’s — an account debtor of the Debtor — on April 2, 1987.