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MATTER OF WALLDESIGN, INC.

Nos. 15-56220, 15-56221.

872 F.3d 954 (2017)

In the MATTER OF WALLDESIGN, INC., a subchapter S. Corporation, Debtor, Lisa Anne Henry, DBA Henry West Designs, Appellant, v. Official Committee of Unsecured Creditors of Walldesign, Inc., Appellee. In the Matter of Walldesign, Inc., a subchapter S. Corporation, Debtor, Donald F. Buresh, an individual; Sharon J. Phillips, an individual, Appellants, v. Official Committee of Unsecured Creditors of Walldesign, Inc., Appellee.

United States Court of Appeals, Ninth Circuit.

Filed October 2, 2017.

Attorney(s) appearing for the Case

Steven J. Katzman , (argued) and Anthony Bisconti , Bienert Miller & Katzman PLC, San Clemente, California, for Appellants.

John P. Reitman , (argued) and Jack A. Reitman , Landau Gottfried & Berger LLP, Los Angeles, California, for Appellees.

Dissent by Judge Nguyen.

OPINION

It is said that bad facts make bad law. These appeals test that maxim against the often esoteric backdrop of the Bankruptcy Code. More specifically, the court must decide who is liable for voidable payments in bankruptcy proceedings when a debtor corporation...

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