Fraudulent Transfer Suit Does Not Require Injury to Creditors, Circuit Says
A trustee has standing and a claim for fraudulent transfer just because a fraudulent transfer erodes assets of the bankrupt estate.
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Second Circuit Allows Sale of ‘General’ Claims Subject to a Creditor’s Disputed Lien
Second Circuit leaves open the question of whether a trustee can sell a ‘general’ or ‘derivative’ claim that’s subject to a valid lien held by a creditor.
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Ninth Circuit Upholds the ‘Ponzi Scheme’ Presumption over a Dissent
A Ninth Circuit dissenter would require the trier of fact to make a finding that the fraudster acted with actual intent to defraud.
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Imputed Knowledge Kills the Good Faith Defense of a Subsequent Transferee, Circuit Says
Criminal activities of an agent don’t take the agent’s actions outside of the scope of authority.
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Supreme Court’s Jarkesy Opinion Clarifies Granfinanciera on Jury Trial Rights
A Supreme Court nonbankruptcy decision means there is no right to a jury trial in the claims-allowance process in bankruptcy.
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Tyler Applied Retroactively to Set Aside a Judgment of Tax Foreclosure
Tyler was applied retroactively because the debtor’s efforts to set aside a tax foreclosure judgment were ‘in the pipeline’ when bankruptcy began.
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BAP Holds that Nondischargeability for Actual Fraud Requires Justifiable Reliance
The Tenth Circuit BAP inferred a requirement of justifiable reliance on nondischargeability for actual fraud.
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Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)
To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.
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