Category: U.S. Supreme Court

U.S. Congress and Supreme Court Support ADR — But Some Bankruptcy Courts Remain Nonconformist on Mediation

NonconformityBy Donald L. Swanson There is "a kind of 'hostility to arbitration' that led Congress to enact" the Federal Arbitration Act. Kindred Nursing Centers v. Clark, U.S. Supreme Court Case No. 16-32 (decided May 15, 2017). Alternative dispute resolution processes ("ADR") include arbitration and mediation. Arbitration Congress passed the Federal Arbitration Act ("Arbitration Act") to... Continue Reading →

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What Happens to Fraudulent Transfer Claims When Barred by Bankruptcy’s Two-Year Statute of Limitations?

By Donald L. Swanson Two Hypotheticals and a Question: First Hypothetical: Debtor makes a fraudulent transfer shortly before filing Chapter 7 bankruptcy. The Chapter 7 Trustee refuses to pursue the fraudulent transfer claim, and the Bankruptcy Code’s two-year statute of limitations expires. Second Hypothetical: Debtor makes a fraudulent transfer shortly before filing Chapter 11 bankruptcy.... Continue Reading →

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U.S. Supreme Court: Stale Claims, Attorneys and Trustees in Chapter 13 & Dissent’s Call for Congress to Overrule (Midland Funding v. Johnson)

By Donald L. Swanson The case is Midland Funding, LLC v. Johnson, Supreme Court Case No. 16-348 (decided May 15, 2017).   It’s about creditors filing proofs of stale claims (i.e., claims barred by statute of limitations) in Chapter 13 cases. The Facts Aleida Johnson files Chapter 13 bankruptcy.  Then, Midland files a proof of claim... Continue Reading →

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U.S. Supreme Court and Its Private Rights v. Public Rights Problem in Bankruptcy (Spokeo v. Robins)

By:  Donald L. Swanson The opinion in the U.S. Supreme Court is Spokeo, Inc. v. Robins (issued on May 16, 2016, in Case No. 13-1339). The Facts of the Case Here are the facts: Spokeo, Inc., operates a “people search engine”: you can search its website for a person’s name and get information about him/her. Spokeo... Continue Reading →

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U.S. Supreme Court: A Tale of Two Certioraris

By Donald L. Swanson These are the best of times, these are the worst of times for 11 U.S.C. § 546(e). § 546(e) provides protection from fraudulent transfer liability in specialized circumstances: e.g., for sales of corporate stock through an intermediary. The “best of times” are because five circuit courts of appeals construe § 546(e)... Continue Reading →

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The U.S. Supreme Court and Funny-Money in Credit Bidding Auctions

By: Donald L. Swanson The U.S. Supreme Court has a penchant for rulings that, as a practical matter, screw up our bankruptcy world. The most recent example is the Supreme Court’s March 22, 2017, ruling in the In re Jevic case [see this article]. Another case, where the U.S. Supreme Court did us no favors in... Continue Reading →

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New Supreme Court Justice Neil Gorsuch Will be Good for Bankruptcy Law

By: Donald L. Swanson The only things I know about Judge (now Justice) Neil Gorsuch are from what I’ve read in two contexts: His rating by the American Bar Association’s Standing Committee on the Federal Judiciary, which voted unanimously to give its best possible rating to Judge Gorsuch as a Supreme Court nominee; and Five... Continue Reading →

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Structured Dismissal Negotiations are Ripe for Mediation: Until the Supreme Court Upends Precedent (In re Jevic)

By: Donald L. Swanson “We are not final because we are infallible, but we are infallible only because we are final.” --From concurring opinion of U.S. Supreme Court Justice Robert H. Jackson, in Brown v. Allen, 344 U.S. 443 (1953), on role and function of the U.S. Supreme Court. Structured dismissals are [correction: were] a... Continue Reading →

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In re Jevic: Once Again, the Supreme Court Screws Up Our Bankruptcy World — And Justice Thomas is Wise in His Dissent

By: Donald L. Swanson “I think it is unwise for the Court to decide” this issue because: (i) “Experience shows that we would greatly benefit from the view of additional courts of appeals on this question,” and (ii) “We also would have benefited from full, adversarial briefing.” --Justice Clarence Thomas, dissenting in Czyzewski v. Jevic... Continue Reading →

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