0.5% Settlement On $644,919 Preference And Fraudulent Transfer Claim In National Logistics Dispute

A liquidation trustee sued a national transportation and logistics provider to avoid and recover $644,919.22 in alleged preferential and fraudulent transfers under sections 547, 548, 550, and 502. The Trustee claimed that freight payments made during the 90‑day preference period were avoidable, sought disallowance of the carrier’s claims, and pursued full recovery of the transfers for the estate.

Our firm prepared a comprehensive defense grounded in the parties’ long‑standing transportation agreement and the detailed payment history. We developed a robust ordinary course of business defense by comparing historic and preference‑period payment timing, showing that the challenged payments fell squarely within the range and statistical profile of the parties’ pre‑petition dealings. We also quantified a substantial subsequent new value defense based on unpaid freight services provided after the alleged transfers, as well as a reasonably equivalent value defense anchored in the carrier’s provision of essential, temperature‑controlled transportation services across multiple facilities and jurisdictions.

Although the case was referred to mediation, our position statement and supporting analyses led to a settlement before the mediation session convened. The Trustee agreed to resolve all claims for a payment of only $3,000—approximately 0.5% of the $644,919.22 originally demanded—while our client retained its claims and avoided the risks and costs of trial.

(2)