Delaware District Court Denies Interlocutory Appeal on Stern Claims

Introduction Bankruptcy courts are often asked to determine the state law rights of debtors and claimants alike.  However, the Supreme Court in 2011 held that the non-Article III courts (i.e., bankruptcy courts) generally do not hold constitutional authority to enter final judgments on state common law claims, despite being conferred with statutory authority under 11 […]

Read More

Fifth Circuit Restricts Double Recovery in Fraudulent Transfer Action

The laws of preferential and fraudulent transfers under the Bankruptcy Code can often seem theoretical and formulaic. When certain boxes are checked, it appears, at first blush, that a pre-bankruptcy transfer can be avoided, regardless of any intent or surrounding circumstances. However, in Whitlock v. Lowe (In re Curtis DeBerry), Case No. 18-50335 (5th Cir. […]

Read More

Eleventh Circuit Avoids Upstream Transfers as Fraudulent

The Eleventh Circuit recently avoided, as fraudulent transfers, certain liens pledged by subsidiaries to secure a $500 million loan made to their parent, Tousa, Inc.  See Senior Transeastern Lenders v. Official Comm. of Unsecured Creditors (In re Tousa, Inc.),  No. 11-11071, 2012 WL 1673910 (11th Cir. May 15, 2012).  These liens were avoided as upstream transfers that, pursuant […]

Read More