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IN RE QUALIA CLINICAL SERVICE, INC.

No. 11-1201.

652 F.3d 933 (2011)

In re QUALIA CLINICAL SERVICE, INC., Debtor. Rick D. Lange, as Chapter 7 Trustee for the Bankruptcy Estate of Qualia Clinical Service, Inc., Appellee, v. Inova Capital Funding, LLC, Inova Capital Funding, Inc., Appellants.

United States Court of Appeals, Eighth Circuit.

Filed: August 30, 2011.

Attorney(s) appearing for the Case

Steven William Hardy, argued, Atlanta, GA, Brandon R. Tomjack, Omaha, NE, Chris Denison, Newnan, GA, on the brief, for appellee.

Brian S. Kruse, argued, Lincoln, NE, for appellee.

Before COLLOTON, CLEVENGER, and BENTON, Circuit Judges.

CLEVENGER, Circuit Judge.

This case concerns the bankruptcy estate of Qualia Clinical Service, Inc. ("Qualia"). The estate's Chapter 7 Trustee ("Trustee") seeks to avoid as a preferential transfer a security interest recorded by one of Qualia's creditors shortly before the bankruptcy petition. The bankruptcy court2 and the Bankruptcy Appellate Panel of this court ("BAP") held the security interest avoidable. Lange v. Inova Capital Funding...

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