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IN RE U.S. WIRELESS CORP., INC.

Bankruptcy Nos. 01-10262 (CSS), 01-10263(CSS), 01-10264(CSS). Adversary No. 03-55657 (CSS).

386 B.R. 556 (2008)

In re U.S. WIRELESS CORPORATION, INC., Wireless Location Technologies, Inc., and Wireless Location Services, Inc., Debtors. The Liquidating Trust of U.S. Wireless Corporation, Inc., Wireless Location Technologies, Inc., and Wireless Location Services, Inc., Plaintiff, v. David Huffman, Defendant.

United States Bankruptcy Court, D. Delaware.

May 6, 2008.

Attorney(s) appearing for the Case

Klehr, Harrison, Harvey, Branzburg & Ellers LLP, Joanne B. Wills, Christopher A. Ward, Wilmington, DE, for the Liquidating Trust of U.S. Wireless Corp., et al.

Margolis Edelstein, Herbert W. Mondros, Lucian Murley, Wilmington, DE, for David Huffman.

OPINION1

CHRISTOPHER S. SONTCHI, Bankruptcy Judge.

INTRODUCTION

Before the Court is an action to avoid and to recover transfers made by the Debtors on behalf of David Huffman, a former employee of the Debtors. The Liquidating Trust initiated this adversary proceeding to recover approximately $330,000 in taxes paid by the Debtors on behalf of Mr. Huffman on the grounds that: (i) the payment of taxes on...

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