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Death, Taxes & Preference Suits: At Least One May Be Escaped | Arnall Golden Gregory LLP

Death, Taxes & Preference Suits: At Least One May Be Escaped | Arnall Golden Gregory LLP
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Preference Avoidance Actions: When Late is Ordinary | Patterson Belknap Webb & Tyler LLP

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A recent case shows how even late payments can be used to satisfy the ordinary course of business defense in a preference avoidance action.
Baumgart v. Savani Props Ltd. (In re Murphy), Case No. 20-11873, Adv. Pro. No. 20-1070, 2021 Bankr. LEXIS 1035 (Bankr. N.D. Ohio Apr. 19, 2021).
The defendant owned an apartment building where the debtor was a tenant. Rent was due on the first of each month, with a five-day grace period before a late charge was imposed. About 20 months after the lease began, the tenant filed for chapter 7. Two monthly payments were made on time. The other payments were late, ranging from 6 to 29 days after the due date. ....

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