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IN RE R.W. LEET ELECTRIC, INC.

No. 06-8071.

372 B.R. 846 (2007)

In re R.W. LEET ELECTRIC, INC., Debtor. Marcia R. Meoli, Chapter 7 Trustee, Plaintiff-Appellant, v. Kendall Electric, Inc., Defendant-Appellee.

United States Bankruptcy Appellate Panel of the Sixth Circuit.

Decided and Filed: July 19, 2007.

Attorney(s) appearing for the Case

ARGUED AND ON BRIEF: Michael O'Neal, Stephen B. Grow, Warner, Norcross & Judd., Grand Rapids, Michigan, for Appellant.

ARGUED AND ON BRIEF: Vern J. Steffel, Jr., Steffel & Steffel, Battle Creek, Michigan, for Appellee.

Before: AUG, LATTA, and PARSONS, Bankruptcy Appellate Panel Judges.

OPINION

PARSONS, Bankruptcy Judge.

In this preference action under 11 U.S.C. § 547, the bankruptcy court granted summary judgment in favor of the defendant, concluding that the alleged preferential payments had not been property of the debtor because they were trust funds under Michigan law. For the reasons that follow, the decision will be reversed and the proceeding remanded.

I. ISSUES ON APPEAL

The issues on appeal are:

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