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IN RE NORTHPOINT COMMUNICATIONS GROUP, INC.

Bankruptcy Nos. 01-30125, TC to 01-30128 TC, Adversary Nos. 03-3051 T.C. 03-3034 TC.

361 B.R. 149 (2007)

In re NORTHPOINT COMMUNICATIONS GROUP, INC., Northpoint Communications, Inc., Northpoint Communications of Virginia, Inc., and Northpoint International, Inc., Debtors. E. Lynn Schoenmann, Trustee of the Estate of NorthPoint Communications, Inc., Plaintiff, v. BCCI Construction Co., aka Brent Construction, Defendant.

United States Bankruptcy Court, N.D. California.

February 12, 2007.

Attorney(s) appearing for the Case

Dennis D. Davis, Goldberg, Stinnett, Meyers and Davis, San Francisco, CA, for Plaintiff.

Ori Katz, Steven B. Sacks, Sheppard, Mullin, Richter and Hampton, William F. Abbott, Law Offices of William F. Abbott, San Francisco, CA, Thomas G.F. Del Beccaro, Del Beccaro, Ratfield, Hornsby and Blake, Walnut Creek, CA, for Defendant.

OPINION

THOMAS E. CARLSON, Bankruptcy Judge.

The primary issue in this case is whether the defendant established the ordinary-course-of-business defense to the trustee's preference claim. The case presents an interesting and close question regarding one of the elements of that defense: that the payments be "made in the ordinary course of business or financial affairs of the debtor and the transferee." The defendant satisfied this requirement, although...

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