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IN RE BOHLEN ENTERPRISES, LTD.

Nos. 87-2413, 87-2442.

859 F.2d 561 (1988)

In re BOHLEN ENTERPRISES, LTD. d/b/a Central Office Equipment, Debtor. Thomas G. McCUSKEY, Substitute Trustee for Wesley B. Huisinga, Appellant, v. The NATIONAL BANK OF WATERLOO, Appellee.

United States Court of Appeals, Eighth Circuit.

Decided September 30, 1988.

Attorney(s) appearing for the Case

Thomas G. McCuskey, Cedar Rapids, Iowa, for appellant.

George Keith, Waterloo, Iowa, for appellee.

Before HEANEY and McMILLIAN, Circuit Judges, and HILL, Senior District Judge.

IRVING HILL, Senior District Judge.

In this opinion we reverse a judgment of the district court in a bankruptcy case because it erroneously applied the doctrine of "earmarking" to justify rejection of a claim that a transfer of funds to a pre-existing creditor was a voidable preference.

FACTS

Bohlen Enterprises Ltd. ("debtor") was a retail office equipment business in Waterloo, Iowa. Mr. William F. Bohlen was its president. In late April 1986 the...

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