In Re Red Dot Scenic, Inc.: Thomas Carroll v. Angela Tese-Milner, 351 F.3d 57 (2d Cir. 2003). · Go Syfert
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In Re Red Dot Scenic, Inc.: Thomas Carroll v. Angela Tese-Milner, 351 F.3d 57 (2d Cir. 2003). Cases Citing This Book View Copy Cite
“if the recipient of debtor funds was the initial transferee, the bankruptcy code imposes strict liability and the bankruptcy trustee may recover the funds.”
23 citation events (23 in the last 25 years) across 9 distinct courts.
Strongest positive: Jalbert v. Gryaznova (nysb, 2020-09-21)
Treatment trajectory · 2004 → 2026 · click a year to view as-of
2004 2015 2026
Top citers, strongest first. 11 distinct citers. How cited ↗
discussed Cited as authority (verbatim quote) Jalbert v. Gryaznova
Bankr. S.D.N.Y. · 2020 · signal: see · quote attribution · 1 verbatim quote · confidence high
if the recipient of debtor funds was the initial transferee, the bankruptcy code imposes strict liability and the bankruptcy trustee may recover the funds.
discussed Cited as authority (verbatim quote) In Re Red Dot Scenic, Inc.
Bankr. S.D.N.Y. · 2004 · quote attribution · 1 verbatim quote · confidence high
neither party contests that the requirements of section 548 were met.
discussed Cited as authority (rule) Jalbert v. Gryaznova
2d Cir. · 2022 · confidence medium
“If the 23 recipient of debtor funds was the initial transferee, the bankruptcy code imposes strict liability and 2 1 the bankruptcy trustee may recover the funds.” In re Red Dot Scenic, Inc., 351 F.3d 57, 58 (2d 2 Cir. 2003).
cited Cited as authority (rule) In Re Bernard L. Madoff Inv. SEC. LLC
2d Cir. · 2021 · confidence medium
In re Red Dot Scenic, Inc., 351 F.3d 57, 58 (2d Cir. 2003) (emphasis added); see also Picard v. Fairfield Greenwich Ltd., 762 F.3d 199 , 209 & n.8 (2d Cir. 2014).
discussed Cited as authority (rule) In Re: JVJ Pharmacy Inc. (2×) also: Cited "see"
S.D.N.Y. · 2021 · confidence medium
See Tese-Milner v. Brune (In re Red Dot Scenic, Inc.), 293 B.R. 116, 121 (S.D.N.Y. 2003) (“The structure and purpose of section 550(a)(1) confirm that a principal does not become an initial transferee simply by using his control over corporate assets to effect a fraudulent transfer.”), aff’d, 351 F.3d 57 (2d Cir. 2003); id. at 124 (finding a third party who retained physical control over the debtor’s funds to be the initial transferee notwithstanding a debtor’s principal causing those transfers to be made for the principal’s benefit); Rupp v. Markgraf, 95 F.3d 936, 941 (10th Cir. 1…
discussed Cited as authority (rule) Geltzer v. Barish (In re Geltzer)
Bankr. S.D.N.Y. · 2013 · confidence medium
Constructive Fraud “Under 11 U.S.C. § 548 , the bankruptcy trustee is permitted to avoid any transfers ... for which the debtor did not receive reasonably equivalent value, and at which time the debtor was insolvent or because of which the debtor became insolvent.” Carroll v. Tese-Milner (In re Red Dot Scenic, Inc.), 351 F.3d 57, 58 (2d Cir.2003) (emphasis added).
discussed Cited as authority (rule) Bruno MacHinery Corp. v. Troy Die Cutting Co. (In Re Bruno MacHinery Corp.) (2×) also: Cited "see"
Bankr. N.D.N.Y. · 2010 · confidence medium
Carroll v. Tese-Milner (In re Red Dot Scenic, Inc.), 351 F.3d 57, 58 (2d Cir.2003) (citing 11 U.S.C. § 550 (a)).
discussed Cited as authority (rule) Ricci v. DeStefano (2×)
2d Cir. · 2008 · confidence medium
Estate of Payne v. United States, 427 F.3d 158, 159 (2d Cir. 2005) (per curiam); In re Red Dot Scenic, Inc., 351 F.3d 57, 58 (2d Cir.2003) (per curiam); United States v. Gluzman, 154 F.3d 49, 50 (2d Cir.1998); Trans World Airlines, Inc. v. Sinicropi, 84 F.3d 116, 116 (2d Cir.) (per curiam), cert, denied, 519 U.S. 949 , 117 S.Ct. 360 , 136 L.Ed.2d 252 (1996).
cited Cited "see" Allan B. Mendelsohn as Trustee of the Estate of Le v. Roslyn, LLC
Bankr. E.D.N.Y. · 2021 · signal: see · confidence high
See Red Dot Scenic Inc. v. Tese–Milner (In re Red Dot Scenic, Inc.), 351 F.3d 57, 58 (2d Cir. 2003).
discussed Cited "see" Pergament v. Brooklyn Law Sch. (2×) also: Cited "see, e.g."
E.D.N.Y · 2019 · signal: see · confidence high
See Carroll v. Tese-Milner (In re Red Dot Scenic, Inc.) , 351 F.3d 57 , 58 (2d Cir. 2003).
cited Cited "see, e.g." LaMonica, as Chapter 7 Trustee of the Estate of JV v. Harrah's Atlantic City Operating Company, LLC
Bankr. S.D.N.Y. · 2020 · signal: see, e.g. · confidence medium
See, e.g., Carroll v. Milner (In re Red Dot Scenic, Inc.), 351 F.3d 57, 58 (2d Cir. 2003).
Retrieving the full opinion text from the archive…
In Re RED DOT SCENIC, INC.: Thomas Carroll, Defendant-Appellant,
v.
Angela Tese-Milner, Plaintiff-Appellee
Docket 03-5016.
Court of Appeals for the Second Circuit.
Dec 5, 2003.
351 F.3d 57
Anne-Miriam V. Hart, Law Office of Anne-Miriam V. Hart, New York, NY, for Defendant-Appellant., Michael M. Milner, Law Firm of Tese & Milner, New York, NY, for Plaintiff-Ap-pellee.
Van Graafeiland, Sack, Gibson.
Cited by 17 opinions  |  Published
PER CURIAM.

Thomas Carroll appeals from the district court’s order affirming the bankruptcy court’s grant of summary judgment to Angela Tese-Milner, the Chapter 7 bankruptcy trustee of Red Dot Scenic, ' Inc. (“Red Dot” or “debtor”). Tese-Milner brought an adversary proceeding to avoid allegedly fraudulent conveyances of Red Dot’s funds under 11 U.S.C. § 548(a)(1). In the conveyances in question, David Bruñe, the sole shareholder of Red Dot, wrote four checks drawn on Red Dot’s corporate checking account to Carroll towards payment of a personal debt related to Brune’s purchase of Carroll’s interest in Red Dot. Bruñe never reimbursed Red Dot for the amount of the checks.

Under 11 U.S.C. § 548, the bankruptcy trustee is permitted to avoid any transfers within one year of the filing date for Chapter 11 for which the debtor did not receive reasonably equivalent value, and at which time the debtor was insolvent or because of which the debtor became insolvent. See 11 U.S.C. § 548(a)(1). Neither party contests that the requirements of section 548 were met. If the recipient of debtor funds was the initial transferee, the bankruptcy code imposes strict liability and the bankruptcy trustee may recover the funds. See 11 U.S.C. § 550(a). If the recipient was not the initial transferee, however, he or she may assert a good faith defense. See 11 U.S.C. § 550(b). The sole issue on appeal is whether Carroll is the initial transferee of the debtor’s funds under 11 U.S.C. § 550(a)(1) and therefore is strictly liable for their return.

In a well-reasoned and thorough opinion, Chief Judge Mukasey concluded that, because the funds moved from Red Dot’s account directly to Carroll, Carroll was the initial transferee and was therefore required to return the funds regardless of any potential good faith defense. In re Red Dot Scenic, Inc., 293 B.R. 116, 122 (S.D.N.Y.2003). Bruñe, who exercised no control over the funds at issue once they were transferred from Red Dot’s account, was not the initial transferee. Id. at 123. We agree with both the district court’s conclusion and its reasoning, and we therefore affirm on the opinion of the district court.