McGranahan
McGranahan v. Fisher Nut Co. (In re Central Valley Processing, Inc.)
Opinion
Lead Opinion
Dorian, J.
MEMORANDUM OF DECISION
Pornography doesn’t promptly spring to mind when considering the defense of “ordinary course of business ... of the debtor and the transferee” in connection with al *677 leged preferential transfers under 11 U.S.C. § 547 . But the analytical tool used by Mr. Justice Stewart in Jacobellis v. State of Ohio, 378 U.S. 184 , 84 S.Ct. 1676 , 12 L.Ed.2d 793 (1964), wherein he states that he knows pornography when he sees it, would appear to apply here as well, substituting, as appropriate, “ordinary course of business.”
The Chapter 7 trustee, Michael D. McGranahan (“the trustee”) has sued defendant Fisher Nut Company (“the defendant”) to recover as preferences payments made by the debtor, Central Valley Processing, 40, 40, and 45 days after shipment of goods and credited to the account of the debtor 44, 44, and 49 days, respectively, after such shipment. 1 The check by which the payments were made was dated December 2, 2002. The printed form invoices issued by the defendant called for payment in 30 days. While it is presumed that there were some purchase orders or something similar signed by the parties which included terms for payment, no such documents were…