Source: http://www.chanrobles.com/usa/us_supremecourt/503/393/case.php
Timestamp: 2019-12-06 03:49:05
Document Index: 87327436

Matched Legal Cases: ['§ 101', '§ 101', '§ 3', '§ 4', '§3', '§ 547', '§ 547', '§ 547', '§ 1', '§ 1', '§ 101', '§ 101']

1 The debtor in this case is actually a collection of debtors whose simultaneous and related bankruptcy filings have been consolidated in a single proceeding: Alan J. and Mary Frances Antweil, husband and wife, Morris Antweil (deceased), and Hobbs Pipe & Supply, a general partnership. Nothing in our decision turns on this fact, and we therefore refer to them collectively as "debtor."cralaw
3 Those selecting a date of honor rule include Nicholson v. First Investment Co., 705 F.2d 410 (CA111983) (Bankruptcy Act), and In re New York City Shoes, Inc., 880 F.2d 679 (CA3 1989) (dicta). Those selecting date of delivery include Global Distribution Network, Inc. v. Star Expansion Co., 949 F.2d 910 (CA7 1991); In re Virginia Information Systems Corp., 932 F.2d 338 (CA4 1991); In re Belknap, Inc., 909 F.2d 879 (CA6 1990); and In re Kenitra, Inc., 797 F.2d 790 (CA9 1986), cert. denied sub nom. Morrow, Inc. v. Agri-Beef Co., 479 U. S. 1054 (1987).cralaw
" [(e)(l)](B) a transfer of a fixture or property other than real property is perfected when a creditor on a simple contract cannot acquire a judicial lien that is superior to the interest of the transferee.
" [(e)](2) For the purposes of this section, except as provided in paragraph (3) of this subsection, a transfer is made-
In 1990, Congress added eight new definitions to § 101 in two separate Acts, Public Laws 101-311 and 101-647. The addition of the new definitions apparently has resulted in confusion in codifying those definitions, with the result that there are now in the United States Code, Chapter 11, two sections 101(54), one defining "stockbroker" and the second defining "transfer." We will refer to "transfer" as being codified at § 101(54).cralaw
That is not to say, however, that the recipient of a check is without any rights. Receipt of a check for an underlying obligation suspends the obligation "pro tanto until the instrument ['s] ... presentment [;] ... discharge of the underlying obligor on the instrument also discharges him on the obligation." § 3-802(1)(b), 2A U. L. A. 514 (1991). But should
6 "A check or other draft does not of itself operate as an assignment of any funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until he accepts it."cralaw
7 Admittedly, such behavior might create a cause of action for the debtordrawer, see U. C. C. § 4-402, 2B U. L. A. 59 (1991), but the recipient would not have any claim against the bank.cralaw
8 Petitioner asserts that upon the date of delivery, he held a cause of action against the debtor. Brief for Petitioner 18. We think that petitioner may overstate matters a bit; it appears under the U. C. C. that receipt of the check provides a contingent cause of action, the contingency being a subsequent dishonoring of the check and a demand to the drawer for payment. See U. C. C. §3-122(3), 2 U. L. A. 407 (1991), and Official Comment , 1. It is unnecessary to resolve this question, however, for even on petitioner's more expansive assertion his claim under the Bankruptcy Code fails.cralaw
To begin, we note that appeals to statutory history are well taken only to resolve "statutory ambiguity." Toibb v. Radloff, 501 U. S. 157, 162 (1991). We do not think this is such a case. But even if it were, the statements on whichcralaw
9Those Courts of Appeals to have considered the issue are unanimous in concluding that a "date of delivery" rule should apply to check payments for purposes of § 547(c). Braniff Airways, Inc. v. Midwest Corp., 873 F. 2d 805 (CA5 1989); In re Continental Commodities, Inc., 841 F.2d 527 (CA4 1988); In re Wolf & Vine, 825 F.2d 197 (CA9 1987); In re Kenitra, Inc., 797 F.2d 790 (CA9 1986); In re White River Corp., 799 F.2d 631 (CAlO 1986); and O'Neill v. Nestle Libbys P. R., Inc., 729 F.2d 35 (CAI1984). A few Bankruptcy Courts and District Courts have disagreed. See, e. g., In re Hartwig Poultry, Inc., 56 B. R. 332 (Bkrtcy. Ct. ND Ohio 1985). We, of course, express no views on that issue, which is not properly before us. We do note, however, that § 547(c)(2) has undergone significant change since the time of Representative Edwards' and Senator DeConcini's comments. Section 547(c)(2) previously had a requirement that, in order for a payment by the debtor to qualify as a payment in the ordinary course of business, the payment had to have been made within 45 days of when the underlying debt was first incurred. That requirement has since been eliminated. See Union Bank v. Wolas, 502 U. S. 151, 156-157 (1991). This in turn may mean that, in the context of a check payment, there is now less need to precisely date the time when a check transfer occurs for purposes of § 547(c)(2). That is, rather than inquiring whether a transfer occurred on the 45th day or the 46th, courts now need only focus on whether the transfer was made in the ordinary course of business. Id.,cralaw
2 See, e. g., Clark v. Commissioner, 253 F.2d 745, 748 (CA3 1958); see also Don E. Williams Co. v. Commissioner, 429 U. S. 569, 572, n. 2, 582583 (1977). Treasury regulations similarly provide that a charitable contribution is made upon delivery of a check which subsequently clears in due course. Treas. Reg. § 1.170A-1(b), 26 CFR § 1.170A-1(b) (1991).cralaw
4 The fact that "[m]yriad events can intervene between delivery and presentment of the check that would result in the check being dishonored," ante, at 399, does not alter this conclusion because § 101(54) expansively defines the term "transfer" to include even conditional modes of parting with property. In my opinion, the delivery of a check effects such a conditional transfer because upon delivery, the transferee receives a conditional right to funds in the bank account of the maker-the condition being acceptance by the drawee bank.cralaw
Thus §§ 101(54) and 547, when read together, plainly indicate that a "transfer" by check occurs on the date the checkcralaw