On Monday, October 19, 2015, the Plan Administrator of Sound Shore Medical Center of Westchester (the “Debtor”) stipulated to the discontinuance of the adversary proceeding it had brought against a prominent neurosurgeon. The Debtor has brought an adversary proceeding in United States Bankruptcy Court for the Southern District of New York claiming that payments the neurosurgeon had received in the 90-day period prior to the Debtor’s initial bankruptcy filing (the “Preference Period”) were improper “preference” payments that could be avoided and recovered from the doctor. In addition, the Debtor sought to disallow any claim by the neurosurgeon for additional payments until the Debtor received the repayment of the alleged “preference” payment.
The neurosurgeon, represented by James Denlea and Myles Bartley, convinced the Debtor that its suit should be discontinued, with prejudice, and with no payment by the doctor. Defendants were able to demonstrate that the doctor could show that he had provided, during the Preference Period, “new value” for which he was not compensated and that the payments were in the ordinary course, both complete defenses to the Debtor’s claims.
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