Taneja v. First Tennessee Bank NA

The trustee filed an action to avoid and recover certain payments made by FMI to First Tennessee. The trustee alleged that the payments were fraudulent transfers under 11 U.S.C. 548, and were part of a fraudulent scheme. The court concluded that the bankruptcy court and the district court correctly applied the objective good-faith standard in determining that the bank employees' testimony provided competent objective evidence that satisfied the bank's burden of proving its affirmative defense under section 548(c). The court also concluded that the bankruptcy court did not clearly err in holding that the bank accepted the payments from FMI in good faith. Accordingly, the court affirmed the judgment of the district court. View "Taneja v. First Tennessee Bank NA" on Justia Law