News & Analysis as of

Constitutional Challenges Bankruptcy Court

Carlton Fields

Florida Appeals Court Decisions Week of August 11 - 15, 2025

Carlton Fields on

U.S. Eleventh Circuit Court of Appeals - Huggins v. Manatee Sch Dist - First Amendment, qualified immunity, amending pleadings - Andre v. Clayton Cnty - Atlanta airport random searches, constitutional challenge,...more

Proskauer Rose LLP

Slamming the Backdoor on Non-Consensual Third-Party Releases

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Non-Consensual Third-Party Releases are Not Permissible in Section 363 Sales or Rule 9019 Settlements, Regardless of the Suggestions of Some Bankruptcy Courts...more

Jones Day

Ninth Circuit: No Injury to Creditors Required for Avoidance of Intentionally Fraudulent Transfer

Jones Day on

To assist a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") in maximizing the value of the bankruptcy estate for the benefit of all stakeholders, the Bankruptcy Code authorizes a trustee or DIP to avoid certain...more

Mayer Brown

STF Overturns Decision of Labor Court for Violating Plenary Reserve Clause and Binding Precedent 10

Mayer Brown on

On April 5, 2024, the Brazilian Supreme Court, ruling on a Constitutional Complaint, ratified the imperative of Article 97 of the Federal Constitution and Binding Precedent 10, overturning a ruling by the Regional Labor Court...more

Nelson Mullins Riley & Scarborough LLP

Eleventh Circuit Confirms Refunds as the Remedy for Overpayment of U.S. Trustee Fees

We have previously discussed the growing list of judicial decisions addressing the appropriate remedy for overpayment of U.S. Trustee (“UST”) quarterly fees.  In U.S. Tr. Region 21 v. Bast Amron LLP (In re Mosaic Mgmt. Grp.,...more

Patterson Belknap Webb & Tyler LLP

Second Circuit Reaffirms that Debtor Can Obtain Refund for Non-Uniform Bankruptcy Fees

We have previously blogged about Siegel v. Fitzgerald, the Supreme Court decision last June that invalidated the 2018 difference in fees between bankruptcy cases filed in Bankruptcy Administrator judicial districts and U.S....more

Lowenstein Sandler LLP

Recent Tenth Circuit Decision in John Q Hammons Fall Following SCOTUS’ Decision in Siegel v. Fitzgerald Could Result in...

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In this episode of the Lowenstein Bankruptcy Lowdown, Michael Savetsky and Erica G. Mannix discuss the recent Tenth Circuit decision in In re John Q Hammons Fall 2006 LLC determining the appropriate remedy for a debtor’s...more

Morgan Lewis

SCOTUS Punts on Remedy for Unconstitutional Chapter 11 Quarterly Fee Increase

Morgan Lewis on

Earlier this year, we highlighted the US Supreme Court’s grant of certiorari in Siegel v. Fitzgerald (In re Circuit City Stores, Inc.) to determine whether a 2017 statute that increased Chapter 11 quarterly fees was...more

Seward & Kissel LLP

Supreme Court Opens Door for Recovery of Excess U.S. Trustee Fees

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In a long-anticipated decision, on June 6, 2022, the Supreme Court unanimously struck down a 2017 increase in U.S. Trustee fees as unconstitutional. The Court held that the increase was a violation of the Constitution’s...more

Patterson Belknap Webb & Tyler LLP

Supreme Court Refuses to Consider the Constitutionality of the Equitable Mootness Doctrine

The doctrine of equitable mootness is in the news again.  The Supreme Court recently denied a cert. petition in a case where the petitioner wanted the doctrine ruled unconstitutional. KK-PB Financial LLC v. 160 Royal Palm...more

Patterson Belknap Webb & Tyler LLP

Supreme Court to Consider Constitutionality of Chapter 11 Fees

Article I, Section 8 of the United States Constitution gives Congress the power to “establish . . . uniform Laws on the subject of Bankruptcies throughout the United States.” While Congress has general authority to...more

Patterson Belknap Webb & Tyler LLP

Blurred Immunity: California Cannot Escape Adversary Proceeding on Grounds of Sovereign Immunity

In 2018, the liquidating trustee for Venoco, LLC and its affiliated debtors (collectively, the “Debtors”) commenced an action in the United States Bankruptcy Court for the District of Delaware seeking monetary damages from...more

Patterson Belknap Webb & Tyler LLP

Debtor Alleges Thirteenth Amendment Violation; Court Says Debtor Has Standing to Assert the Claim; Decision on the Merits to...

It’s rare for a debtor in bankruptcy to raise allegations of involuntary servitude and a violation of the Thirteenth Amendment. But one debtor did just that after a chapter 11 trustee was appointed to take over the debtor’s...more

Skadden, Arps, Slate, Meagher & Flom LLP

A Look at 2019 Court Decisions That May Shape Restructuring Issues in the Year Ahead

A series of decisions over the past year — on issues such as make-whole premiums, intercreditor agreements, backstops for rights offerings and nonconsensual third-party releases — will likely have a significant impact in 2020...more

Patterson Belknap Webb & Tyler LLP

Stern Challenge to Third-Party Plan Releases Fails in Delaware

In hindsight, it seems inevitable that constitutional and other jurisdictional problems would arise when Congress, in enacting the Bankruptcy Reform Act of 1978, created impressive new powers and responsibilities for the...more

Kelley Drye & Warren LLP

Square Peg / Round Hole – The Supreme Court and the Constitutional Authority of U.S. Bankruptcy Courts

The judicial power of the United States is vested in courts created under Article III of the Constitution. However, Congress created the current bankruptcy court system over 40 years ago pursuant to Article I of the...more

Quinn Emanuel

Business Litigation Report - August 2016

Quinn Emanuel on

Circuit Courts Align to Shield SEC Administrative Proceedings from Collateral Constitutional Attack - In response to the financial crisis of the late 2000s, Congress passed the Dodd-Frank Wall Street Reform and Consumer...more

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