Opinion ID: 748192
Heading Depth: 3
Heading Rank: 1

Heading: The Payments Received By OMI

Text: 22 Specifically, the Trustee claims that OMI transferred 60,022 bags 2 of bean seed worth $850,000.00 and received only $240,000.00. Initially, it is important to examine the figures the Trustee asserts are valid and which he uses in his calculations. Golden Seed made four payments to OMI: (1) $69,683.88 in August of 1991; (2) $75,000.00 in December 1991 which included a $22,394.00 credit for the $.40 payments Golden Seed made to the growers; (3) $95,512.16 and $69,688.88 on January 13 and 21, 1992 for the seed delivered between October 1991 and January 1992. These payments total $309,883.92 which Golden Seed paid OMI. 23 The Trustee, however, uses the figure $240,000.00, which accurately is $240,201.04, because he does not include the first progress payment of $69,683.88 in the total amount received by OMI. The Trustee contends that the initial payment was not a progress payment but rather a final payment, or an even-steven payment, which should not be included in the calculations for payments ultimately received by OMI. The bankruptcy court, however, rejected this argument and classified the $69,683.88 payment as a progress payment to be included in the total amount paid by Golden Seed. In re Ostrom-Martin, Inc., 191 B.R. at 134 n. 11. The bankruptcy court concluded that the even-steven payment was a progress payment intended to compensate OMI for the value of its services to date, with GOLDEN and OMI expecting to make more payments and deliveries until they both performed under the oral contract. Id. at 126, 134 n. 11. The district court agreed with the classification of the $69,683.88 payment as a progress payment. In re Ostrom-Martin, Inc., No. 96-1118, Slip Op. at p. 3 (C.D.Ill. Feb. 6, 1997).