Janas
Janas v. Reuter Equipment Co.
Opinion
Lead Opinion
MEMORANDUM *
I. OVERVIEW
Joseph J. Janas (“the Trustee”) appeals the District Court’s reversal of the Bankruptcy Court’s decision and grant of summary judgment in favor of Reuter Equipment Company (“Reuter”). The Trustee seeks avoidance of certain payments made by the debtor to Reuter as preferential payments under 11 U.S.C. § 547 (b) (2001). Because we find that the payments meet the “contemporaneous exchange” exception of 11 U.S.C. § 547 (c)(1) (2001), we affirm the District Court’s order.
II. FACTUAL AND PROCEDURAL BACKGROUND
The Arizona Department of Transportation (“ADOT”) contracted with the debtor, JWJ Contracting Company, Inc. (“JWJ”), to construct two roadways (“the Projects”). JWJ enlisted Continental Insurance Company (“Continental”) as its surety on the Projects. Continental subsequently issued payments and performance bonds for JWJ on both jobs.
Reuter supplied JWJ with the labor, parts, and equipment necessary to complete the Projects. Reuter supplied these goods and services to JWJ on credit, and then issued invoices to obtain payment. The invoices were due and payable within *781 ten (10) days. Due to an accumulation of unpaid invoices, Reuter eventually…