IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)
The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.
Court:
Exclusive Commentary: “I Hear The Train A’ Comin’”: End of Sovereign Immunity For State Agencies in Bankruptcies?
Please note that in order to view the content for the Bankruptcy Headlines you must either sign in if you are already an ABI member, or otherwise you may Become an ABI Member
Supreme Court: The Bankruptcy Code Waived Tribes’ Sovereign Immunity
The Supreme Court resolved a split of circuits in an opinion that could give support to the notion that arbitration agreements are not enforceable in bankruptcy.
Court:
The Case of Lac du Flambeau Band v. Coughlin at the Supreme Court and the Intersection of Bankruptcy and Sovereign Immunity
Second Circuit Reverses, Reinstates Purdue’s Nondebtor, Third-Party Releases
The concurring opinion, which is really a dissent, urges the Supreme Court to grant certiorari and resolve the split of circuits on nondebtor releases.
Court:
Supreme Court Holds that Real Estate Tax Foreclosures Can Violate the Takings Clause
The high court’s ruling on the Takings Clause also seems to mean that real estate tax foreclosures can be avoided as constructively fraudulent transfers.
Court:
Supreme Court Holds that PROMESA Didn’t Waive Puerto Rico’s Sovereign Immunity
The Supreme Court ducked the question of whether Puerto Rico and other U.S. territories are entitled to Eleventh Amendment sovereign immunity just like states.
Court:
Disagreement on Bankruptcy Court’s Jurisdiction to Give ‘Innocent Spouse’ Relief
Bankruptcy Judges Marvin Isgur and Gregory Taddonio disagree on whether the bankruptcy court has subject matter jurisdiction to grant ‘innocent spouse’ relief to a debtor.