Corporate Res. Servs., Inc. v. Wells Fargo Bank, N.A. (In re TS Emp't, Inc.)
James S. Feltman, the Chapter 11 Trustee for TS Employment, Inc. (TSE) and Corporate Resource Services, Inc. (CRS) Debtors, initiated an adversary proceeding against Wells Fargo, N.A. and Wells Fargo Financial Leasing, Inc. The Trustee sought to recover various transfers made to Wells Fargo, including $4.1 million in fees, a $2.5 million payroll overdraft, post-petition bank charges totaling $439,710.58, and a $240,220.26 WFFL copier lease payment, based on theories of constructive fraudulent transfer and preference. The Court found in favor of the Trustee for the $4.1 million in fees and the $439,710.58 in post-petition bank charges, deeming them excessive, punitive, or in violation of the automatic stay. However, the Trustee's claims regarding the $2.5 million payroll overdraft and the WFFL copier lease payment were denied. The Court also ordered an accounting for reimbursed legal fees to determine the recoverable portion.