January 19, 2019, Northern District of Texas – The Debtors collectively operated a nursery under the name Zelenka Farms. Zelenka was one of the nation’s largest wholesale growers and distributors of container-grown shrubs, trees, perennials, roses, and groundcovers. Our client, the Defendant is a small family nursery engaged in the business of native and evergreen azaleas, rhododendrons. The Plaintiff sought to recover preference and transfers worth $ 68,825.00 from our client under Section 547 of the Bankruptcy Code.
Based on our analysis of documents and invoices, we established that the alleged preference period payments were pre-payments and were not made pursuant to an antecedent debt. The alleged transfers were therefore not preferential in nature. We served supplemental responses to the plaintiff’s discovery demands and based on our documents and evidence, the plaintiff dismissed the case for no costs.