Berman v. Forti

UNPUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT In Re: MICHAEL C. FORTI; In Re: GERALDINE E. FORTI, Debtors. MICHAEL C. FORTI; GERALDINE E. FORTI, Plaintiffs-Appellees, No. 99-1333 v. ROBERT M. BERMAN; C. NELSON BERMAN, Defendants-Appellants, and JOEL I. SHER, Trustee. Appeal from the United States District Court for the District of Maryland, at Baltimore. Marvin J. Garbis, District Judge. (CA-98-2959-MJG, BK-96-5-6693-SD) Argued: November 30, 1999 Decided: January 27, 2000 Before WIDENER and WILLIAMS, Circuit Judges, and Samuel G. WILSON, Chief United States District Judge for the Western District of Virginia, sitting by designation. _________________________________________________________________ Affirmed by unpublished per curiam opinion. _________________________________________________________________ COUNSEL ARGUED: Edward Lee Blanton, Jr., Baltimore, Maryland, for Appellants. Alan M. Grochal, TYDINGS & ROSENBERG, L.L.P., Baltimore, Maryland, for Appellees. ON BRIEF: Mary Fran Eber- sole, TYDINGS & ROSENBERG, L.L.P., Baltimore, Maryland, for Appellees. _________________________________________________________________ Unpublished opinions are not binding precedent in this circuit. See Local Rule 36(c). _________________________________________________________________ OPINION PER CURIAM: Robert and C. Nelson Berman appeal the district court's decision affirming the bankruptcy court's determination that the judicial liens they had obtained on the property of Appellees, Michael and Geral- dine Forti, as a result of consent judgments entered against the Fortis, were not voluntary transfers under 11 U.S.C.A. § 522(g)(1) (West 1993) and could therefore be avoided as preferential transfers under 11 U.S.C.A. § 522(h) (West 1993) and 11 U.S.C.A. § 547 (West 1993 & Supp. 1999). The Bermans had sued the Fortis in state court in Maryland because the Fortis failed to repay a series of loans made by the Bermans to Forti Builders, Inc. and because Michael Forti failed to repay a personal loan made to him by C. Nelson Berman. The loans to Forti Builders, which had filed for bankruptcy protection, were guaranteed by Michael and Geraldine Forti, the Vice President and President, respectively, of Forti Builders. The liens in question arose by operation of law after Robert and C. Nelson Berman each secured a consent judgment against the Fortis. Shortly after the consent judg- ments were entered, the Fortis filed for bankruptcy protection and brought this action in the United States Bankruptcy Court for the Dis- trict of Maryland to avoid the judicial liens on their property as pref- erential transfers. 2 We have had the benefit of oral argument and have reviewed the record, the parties' briefs, and the applicable law. Because we find no reversible error, we affirm the judgment of the district court. See Berman v. Forti, 232 B.R. 653 (D. Md. 1999). AFFIRMED 3