IN RE WORKBOATS NORTHWEST, INC.

Bankruptcy No. 95-00369, Adv. No. A96-08441.

201 B.R. 563 (1996)

In re WORKBOATS NORTHWEST, INC., Debtor. Ronald G. BROWN, Chapter 7 Trustee, Plaintiff, v. Brown H. MORTON and Jeane E. Morton, husband and wife, dba Brown Morton Properties, Defendants.

United States Bankruptcy Court, W.D. Washington.

September 27, 1996.


Attorney(s) appearing for the Case

Dean A. Messmer, Lasher Holzapfel, Seattle, WA, for plaintiff.

Arthur H. McKean, Aiken St. Louis & Siljeg, Seattle, WA, for defendants.


MEMORANDUM OPINION

SAMUEL J. STEINER, Bankruptcy Judge.

This matter comes before the Court on cross-motions for summary judgment. The issue is whether a landlord is entitled to set off, as "new value", delinquent rent accruing subsequent to payments which were preferential.

FACTS

The debtor leased its business premises from the defendants, who are insiders of the debtor. From at least August, 1987, through June, 1990, the parties...

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