Valley Lumber Corp. v. Geisler
Opinion of the Court
Affirming the order of the Bankruptcy Judge, the District Court voided a transfer of real property in trust to Valley Lumber Corporation by the bankrupts under Section 67d(2)(a) and (b) of the Bankruptcy Act, 11 U.S.C. Section 107d(2)(a) and (b). The Bankruptcy Judge concluded that the transaction had not been made in good faith and served only to provide Valley, an unsecured creditor, with “a simple means of gaining a possible preference over other creditors.” On appeal Valley asserts that its promise to provide the bankrupts with building materials on credit evidenced its good faith in the transaction and served as “fair consideration” to support the transfer. We disagree.
The existence or absence of good faith in the transaction is a factual question to be determined by the Bankruptcy Judge and is reversible only if clearly erroneous.
. Monson v. First National Bank of Bradenton (5th Cir. 1974) 497 F.2d 135, 137-8; Tepper v. Chichester (9th Cir. 1960) 285 F.2d 309, 312; see also Rule 52(a), Federal Rules of Civ. Proc., 28 U.S.C.
. In Re Southern Land Title Corporation (5th Cir. 1973) 474 F.2d 1033, 1037; De Aragon v. Chase Manhattan Bank (1st Cir. 1972) 457 F.2d 263, 266.
Reference
- Full Case Name
- In re Deward J. MONTGOMERY, Individually and t/a Artway Custom Homes Phyllis Dalton Montgomery, Bankrupts-Appellees. VALLEY LUMBER CORPORATION v. Jerry H. GEISLER, Trustee
- Cited By
- 1 case
- Status
- Published