Document: 498 U.S. 42 111 S.Ct. 330 112 L.Ed.2d 343 R. Dobie LANGENKAMP, Successor Trustee of the Bankruptcy Estates Republic Trust & Savings Company and Financial Corporationv.C.A. CULP, et al. No. 90-93. Nov. 13, 1990. Rehearing Denied Jan. 10, 1991. See 1043, 721. PER CURIAM. 1 This case presents question whether creditors who submit a claim against bankruptcy estate are then sued by trustee in to recover allegedly preferential monetary transfers entitled jury trial under Seventh Amendment. action was brought petitioner Langenkamp, successor Corporation (collectively debtors). Debtors were uninsured, nonbank financial institutions doing business Oklahoma. filed Chapter 11 petitions on September 24, 1984. At time filings, respondents held thrift passbook savings certificates issued debtors, which represented debtors' promise repay moneys had invested. 2 Within 90-day period immediately preceding filing, redeemed some, but not all, they held. Thus, upon became now-bankrupt corporations. Respondents timely proofs estates. Approximately one year after instituted adversary proceedings U.S.C. § 547(b) recover, as avoidable preferences, payments received prior 24 filing. A bench held, Court found that money did fact constitute preferences. In re Co., 84C-01461, Adversary 85-0337 (N.D.Okla., June 26, 1987), App. Pet. for Cert. A-45; 84-01461, 85-0319 A-64. The United States District Northern Oklahoma affirmed. Corp. v. Nos. 87-C-616-C, 87-C-618-C, 87-C-619-C (June 30, 1988), A-67. On appeal, Appeals Tenth Circuit upheld Court's judgment three grounds, reversed issue holders' entitlement trustee's preference claims. 897 F.2d 1041 (1990). Relying our decisions Granfinanciera, S.A. Nordberg, 492 33, 109 2782, 106 26 (1989), Katchen Landy, 382 323, 86 467, 15 391 (1966), correctly "those appellants have or file claims estates undoubtedly [were] from debtors within ninety days latter's constitute[d] preferences." at 1046. went further, however, concluding: 3 "Although some because continued monies invested bankruptcy, . we believe likewise rationale Granfinanciera Katchen. Despite these appellants' claims, actions avoid transfers, consolidated court, plenary rather than part court's summary involving 'process allowance disallowance claims.' " Id., 1046-1047. 4 Petitioner contends erred holding those trial. We agree. 5 recognized filing creditor triggers process "allowance claims," thereby subjecting himself equitable power. U.S., 58-59, n. 14, S.Ct., 2798-2799, 14 (citing Katchen, supra, 336, 476). If is met, turn, with trustee, becomes claims-allowance triable only equity. Ibid. other words, creditor's ensuing become integral restructuring debtor-creditor relationship through equity jurisdiction. 57-58, 2798-2799. As such, there no Amendment right party does estate, can what amounts legal transfer. circumstances defendant 2798. 6 Accordingly, "a depends has submitted estate." 58, bringing themselves jurisdiction Court. Consequently, action. decision overlooked clear distinction cases drawn so created conflict among Circuits this issue. For reason grant petition certiorari, reverse Circuit, remand further consistent opinion. 7 It ordered. 8 Justice KENNEDY took consideration case.

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