Elliott Greenleaf’s Rafael X. Zahralddin-Aravena and Eric M. Sutty addressed the National Builders Group at the Credit Research Foundation in Fort Lauderdale, Florida on October 23, 2013. Their presentation was titled “Defending Preferences for Construction Industry Defendants”. Mr. Zahralddin and Mr. Sutty discussed preference cases in the construction industry and tailored the presentation for the construction industry credit professional. Mr. Zahralddin and Mr. Sutty discussed primary methods to defeat the plaintiff’s case in chief and various defenses. Mr. Zahralddin and Mr. Sutty detailed the role of mechanics liens, statutory trusts, constructive trusts, tracing funds and challenges presented by commingling of funds, and the effect of bonds in a construction industry preference case. They discussed best practices for record retention, informal litigation holds, the effect of critical trade agreements and executory contracts and the role of a creditors committee in preference litigation. Proactive measures that can be implemented prior to and after a bankruptcy filing were detailed as well as what to do once a complaint is filed.