O’Halloran v. Harris Corp.

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The Eleventh Circuit affirmed the Bankruptcy Court's order dismissing a fraudulent conveyance claim by the trustee of the liquidating trust of Teltronics against Harris and RPX. The court held that the Bankruptcy Court made no material error in ruling on the admissibility of evidence, and there was no error in the conclusion that the trustee failed to prove that Teltronics was insolvent at the time of the transfer. In this case, having accepted that the value of the assets listed on the balance sheet, as presented by an expert who testified for the trustee, was incomplete without the inclusion of the value of the three maintenance contracts, the burden was on the trustee to prove that the value of those contracts was so small as to leave the expert's opinion as to insolvency unaffected. The trustee offered no such evidence. Therefore, the court did not reach the lower courts' decisions and dismissed the cross-appeals as moot. View "O'Halloran v. Harris Corp." on Justia Law