Security Systems Supplier
Representation: Defendant in preference action
Bankruptcy Court – Southern District of New York
Situation: The client, a security systems provider, received a demand from a customer’s bankruptcy trustee to return a $29,000 payment that it had received two years earlier. The customer claimed that the payment was a preferential transfer and that the client was not entitled to the money. Incensed that it would receive a demand of this type two years after receiving the payment, the client contacted Bernstein-Burkley, P.C. to fight the claim.
Action: Bernstein-Burkley, P.C. lawyers successfully raised the defense of subsequent new value, prompting the debtor to withdraw its complaint. Not only was the client able to keep the $29,000, but the total cost to the client in fighting the claim was $304.00.