Brady
Brady v. Bestworth-Rommel, Inc.
Opinion
Lead Opinion
Tchaikovsky, J.
MEMORANDUM OF DECISION
In this adversary proceeding, plaintiff Lois I Brady (the “Trustee”), the duly appointed chapter 7 trustee for the above-captioned bankruptcy case, seeks to avoid a pre-petition transfer to defendant Best-worth-Rommel, Inc. (“Bestworth”) pursuant to 11 U.S.C. § 548 (a)(2) and to recover the amount of the transfer from Best-worth pursuant to 11 U.S.C. § 550 (a) or (b). Trial was conducted in this adversary proceeding on October 11, 2006. Having considered the evidence and argument presented at trial, the Court concludes that the Trustee’s claim must fail and that Bestworth is entitled to a judgment in its favor. The reasons for the Court’s decision are set forth below.
SUMMARY OF FACTS
The underlying facts are not in dispute. The above-captioned debtors (the “Debtors”) commenced this chapter 7 bankruptcy case on October 8, 2003, by filing a voluntary petition. At the time the petition was filed and during the year preceding the filing, Debtor Bruce Jacobsen was an employee and shareholder of a California corporation known as Elephant & Sion, Inc. (“Elephant”). Elephant was the owner of certain real property located in San Pablo, California, consisting of a…