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IN RE CAR RENOVATORS

No. 91-7043.

946 F.2d 780 (1991)

In re CAR RENOVATORS, Debtors. Thomas E. REYNOLDS, Trustee of the Bankruptcy Estate of Car Renovators, Inc., Plaintiff-Appellant, v. DIXIE NISSAN, Defendant-Appellee.

United States Court of Appeals, Eleventh Circuit.

November 4, 1991.

Attorney(s) appearing for the Case

Evelyn Y. Teague, Haskell, Slaughter & Young, Birmingham, Ala., for plaintiff-appellant.

Andrew N. LaPlante, Brobston & Brobston, Bessemer, Ala., for defendant-appellee.

Jake Bivona, Bessemer, Ala., Bryan Morgan, Executive Director, Ala. Dist. Attys. Ass'n, Montgomery, Ala., for amicus curiae.

Before COX and DUBINA, Circuit Judges, and GODBOLD, Senior Circuit Judge.

DUBINA, Circuit Judge:

Thomas E. Reynolds, Trustee of the Bankruptcy Estate of Car Renovators, Inc. ("the Trustee"), appeals the district court's order, which held that although a payment by Car Renovators, Inc. (the "Debtor") to Dixie Nissan ("Dixie") making good a previously dishonored check is a preference, it is not avoidable by the Trustee because it was restitution. For the reasons which follow, we reverse.

I. STATEMENT OF THE CASE

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