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IN RE FULGHUM CONST. CORP.

Nos. 81-5779, 81-5801.

706 F.2d 171 (1983)

In re FULGHUM CONSTRUCTION CORPORATION, Debtor, Robert WALDSCHMIDT, Trustee, Plaintiff-Appellant, Cross-Appellee, v. Harry RANIER, Algin Nolan and Ranier & Associates, Defendants-Appellees, Cross-Appellants, First Security National Bank of Lexington and Liberty National Leasing Company, Defendants-Appellees.

United States Court of Appeals, Sixth Circuit.

Decided May 9, 1983.

Attorney(s) appearing for the Case

C. Kinian Cosner (argued), Robert H. Waldschmidt, Cosner, Waldschmidt & Crocker, Nashville, Tenn., for plaintiff-appellant, cross-appellee.

John Bailey, III, Nashville, Tenn., L. Wearen Hughes (argued), William L. Montague, Lexington, Ky., for Harry Ranier, Algin Nolan and Ranier & Associates.

David T. Stosberg (argued), Louisville, Ky., for Liberty Nat. Leasing Co.

Before CONTIE and KRUPANSKY, Circuit Judges, and CELEBREZZE, Senior Circuit Judge.

KRUPANSKY, Circuit Judge.

This action joins inquiry into the longstanding judicially evolved application of the "net result rule" as the criteria for determining a preferential transfer as defined in 11 U.S.C. § 547 of the Bankruptcy Reform Act of 1978. An involuntary petition in bankruptcy was filed against Fulghum Construction Corporation (Fulghum) whereupon the trustee initiated the instant proceeding to, inter...

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