Even Without a Historical Period to Show Ordinariness, We Were Able To Secure A Dismissal of the Complaint for No Payment

The Debtor was a nonprofit organization assisting thousands of vulnerable citizens (and their families) dealing with behavioral health and substance use disorders, housing challenges, and developmental and intellectual disabilities.

The Defendant and the Debtor entered into an agreement wherein the Defendant rendered services to the Debtor as a nurse. The Defendant was retained during the Preference Period and did not have a Historical Period with the Debtor to show ordinariness.

The Plaintiff filed a Complaint against the Defendant seeking the return of Defendant’s payments it received as compensation for their services.

Regardless, we were able to persuade Plaintiff that the transfers from the Debtor to Defendant were made not only pursuant to the terms of the agreement between the Parties but also in strict adherence to the terms used by those similarly situated in the same industry as the Parties, ensuring their legality.

The Plaintiff dismissed the Complaint for no payment after receiving our analysis.

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