IN RE FRIEDMAN'S INC.

No. 13-1712.

738 F.3d 547 (2013)

In re FRIEDMAN'S INC., Debtor. Friedman's Liquidating Trust, Appellant v. Roth Staffing Companies LP.

United States Court of Appeals, Third Circuit.

Opinion Filed: December 24, 2013.


Attorney(s) appearing for the Case

John D. Demmy, Esquire (Argued), Maria Aprile Sawczuk, Esquire , Stevens & Lee, P.C., Wilmington, DE, Nicholas F. Kajon, Esquire , Stevens & Lee, P.C., New York, NY, for Appellant.

Peter M. Sweeney, Esquire , Blakeley & Blakeley, LLP, Wilmington, DE, Johnny White, Esquire , Bradley D. Blakeley, Esquire (Argued), Blakeley & Blakeley, LLP, Irvine, CA, for Appellee.

Before: RENDELL, JORDAN and LIPEZ, Circuit Judges.


OPINION

RENDELL, Circuit Judge.

This appeal presents an issue of first impression in our Court: can a post-petition payment to a creditor pursuant to a Wage Order entered at a debtor's request reduce the creditor's new value defense—and thereby increase preference liability—the same as it would if the payment had been made pre-petition?

Under the Bankruptcy Code, the trustee may avoid certain preferential transfers made by a debtor...

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