Tabb Treatise Cited in SCOTUS Decision on Bankruptcy Code’s ‘Safe Harbor’ Provision
27 February 2018
Of Counsel Charles Tabb’s treatise, The Law of Bankruptcy, was cited by the U.S. Supreme Court in a decision Tuesday holding that the only relevant transfer for purposes of the securities “safe harbor” provision in the bankruptcy code is the transfer that the trustee seeks to avoid, rather than the component parts of the transfer.
At issue in the case, Merit Management Group, LP v. FTI Consulting, Inc., was a circuit split over the scope of the bankruptcy code’s safe harbor provision exempting certain securities transactions from clawbacks.
The court, in a unanimous opinion by Justice Sonia Sotomayor, sided with the Seventh Circuit’s 2016 interpretation of the law, saying that when determining whether a transfer can be avoided in bankruptcy, courts should look at the overarching transfer instead of its component parts.
“The court concludes that the plain meaning of Section 546(e) dictates that the only relevant transfer for purposes of the safe harbor is the transfer that the trustee seeks to avoid,” the court wrote.
At issue in the case, Merit Management Group, LP v. FTI Consulting, Inc., was a circuit split over the scope of the bankruptcy code’s safe harbor provision exempting certain securities transactions from clawbacks.
The court, in a unanimous opinion by Justice Sonia Sotomayor, sided with the Seventh Circuit’s 2016 interpretation of the law, saying that when determining whether a transfer can be avoided in bankruptcy, courts should look at the overarching transfer instead of its component parts.
“The court concludes that the plain meaning of Section 546(e) dictates that the only relevant transfer for purposes of the safe harbor is the transfer that the trustee seeks to avoid,” the court wrote.
People
Related News
27 August 2024
Pro Bono
Foley Secures Landmark Victory for Pro Bono Client in Federal and State Cases
Foley & Lardner LLP is proud to announce a series of significant pro bono victories on behalf of the San Francisco Zen Center, culminating in a clean sweep across both federal and state courts.
30 July 2024
Press Releases
Foley Honors 'Outstanding Leader, Lawyer, and Person,' Stan Jaspan
Foley & Lardner, LLP is deeply saddened to announce our friend, colleague, and Managing Partner Stan Jaspan passed away unexpectedly on Saturday, July 27.
11 July 2024
Press Releases
Foley Expands Health Care Capabilities with National Team of Corporate and Regulatory Lawyers, Simultaneously Opens Office in Raleigh
Foley announced today that the firm strengthened its Health Care & Life Sciences Sector, adding a group of attorneys and opening a new office in Raleigh, N.C.