HOLDINGS: [1]-In a case in which plaintiffs sued defendants for allegedly breaching a settlement agreement the parties had entered in a prior lawsuit, the appellate court held that a debt of a contractual co-obligor is not extinguished by another co-obligor’s pre-bankruptcy payment to a creditor that is later determined to be a bankruptcy preference; [2]-Defendants breached the settlement agreement because the full amount owed under the settlement agreement was not paid even if none of the parties was aware of that fact at the time the settlement agreement was entered; [3]-Plaintiff effectively by operation of law never received payment to the extent of the bankruptcy clawback; [4]-A release of claims by plaintiff remained a part of the unrescinded agreement and prevented plaintiff from pursuing any future claims that might be barred by it.

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Judgment affirmed.