SmartBrief
Confirm favorite deletion?
Bankruptcy Keyed to Bussel, 12th Ed.
Matter of Clark Pipe & Supply Co.
Citation:
893 F.2d 693 (1990)Facts
Clark Pipe and Supply Company was in the business of buying and selling steel pipe for offshore drilling platforms. In September 1980, Clark entered into loan agreements with Associates Commercial Corporation, under which Associates would make revolving loans secured by accounts receivable and inventory. The loan amount was determined by a formula: a percentage of eligible accounts receivable plus a percentage of inventory cost. The agreements allowed Associates to reduce the percentage advance rates at its discretion.
When the oil industry declined in late 1981, Clark’s business slumped. In February 1982, Associates began reducing the percentage advance rates so that Clark had just enough cash to pay direct operating expenses. Clark used these advances to keep operating and sell inventory, with the proceeds used to pay off past advances from Associates. While Associates did not explicitly dictate which bills Clark should pay, the reduced funding meant Clark had no funds to pay vendors or other non-essential creditors.
Several unpaid vendors initiated foreclosure proceedings against Clark between February and May 1982. When a third creditor began foreclosure in May, Clark filed for Chapter 11 bankruptcy protection. The case was later converted to Chapter 7 liquidation. The bankruptcy trustee then brought an action against Associates, seeking to recover alleged preferences and equitable subordination of Associates’ claims.
Only StudyBuddy Pro offers the complete Case Brief Anatomy*
Access the most important case brief elements for optimal case understanding.
*Case Brief Anatomy includes: Brief Prologue, Complete Case Brief, Brief Epilogue
- The Brief Prologue provides necessary case brief introductory information and includes:
Topic:
Identifies the topic of law and where this case fits within your course outline.Parties:
Identifies the cast of characters involved in the case.Procedural Posture & History:
Shares the case history with how lower courts have ruled on the matter.Case Key Terms, Acts, Doctrines, etc.:
A case specific Legal Term Dictionary.Case Doctrines, Acts, Statutes, Amendments and Treatises:
Identifies and Defines Legal Authority used in this case.
- The Case Brief is the complete case summarized and authored in the traditional Law School I.R.A.C. format. The Pro case brief includes:
Brief Facts:
A Synopsis of the Facts of the case.Rule of Law:
Identifies the Legal Principle the Court used in deciding the case.Facts:
What are the factual circumstances that gave rise to the civil or criminal case? What is the relationship of the Parties that are involved in the case.Issue(s):
Lists the Questions of Law that are raised by the Facts of the case.Holding:
Shares the Court's answer to the legal questions raised in the issue.Concurring / Dissenting Opinions:
Includes valuable concurring or dissenting opinions and their key points.Reasoning and Analysis:
Identifies the chain of argument(s) which led the judges to rule as they did.
- The Brief Prologue closes the case brief with important forward-looking discussion and includes:
Policy:
Identifies the Policy if any that has been established by the case.Court Direction:
Shares where the Court went from here for this case.