Background

A national demolition company insured by a large insurer “off and on” went through financial difficulties. Ultimately it filed in bankruptcy and the Trustee sought recovery of $300,000.00 which had been paid to the insurer prior to filing as a voidable preference.

The Challenge

We were retained by the insurer to defend against the Trustee’s efforts to recoup the monies paid.

The Solution

Recognizing that the premiums had been necessary for the operation of the company and that they had been paid as a contemporaneous exchange of value in the normal course, we vigorously defended an adversary proceeding brought in the United States Bankruptcy Court for the Southern District of New York.

The Result

We were successful in having the voidable preference claim dismissed.