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IN RE SUCCESSOR BORROWER SERVICES, LLC

Bankruptcy No. 09-13505 B. Adversary No. 10-1115 B.

489 B.R. 336 (2013)

In re SUCCESSOR BORROWER SERVICES, LLC, Debtor. Marianne T. O'Toole, as Chapter 11 Trustee of Successor Borrower Services, LLC, Plaintiff v. Moscone, Emblidge & Quadra, LLP, Defendant.

United States Bankruptcy Court, W.D. New York.

March 19, 2013.

Attorney(s) appearing for the Case

SilvermanAcampora LLP, Lon J. Seidman, Esq., of counsel, Jerricho, NY, for Plaintiff Marianne T. O'Toole Chapter 11 Trustee.

Pinnacle Law Group LLP, Matthew J. Shier, Esq., of counsel, Kevin F. Rooney, Esq., of counsel, San Francisco, CA, for Defendant Moscone, Emblidge & Quadra, LLP.

DECISION & ORDER

CARL L. BUCKI, Bankruptcy Judge.

In this Chapter 11 case, the trustee commenced an adversary proceeding to avoid a lien that the debtor had given to secure payment of legal fees that would arise in the defense of ongoing litigation in state court. A resolution of the present dispute requires that we examine the circumstances under which a security interest for legal fees will constitute a fraudulent conveyance. Further, we must...

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