Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
SCOTUS Recap: What Lies Ahead for the Lower Courts' Tests for “Non-Statutory Insiders”
In U.S. Bank Nat'l Ass'n v. Village at Lakeridge, LLC, 200 L.Ed.2d 218 (U.S. 2018), the U.S. Supreme Court laid out the standard of review for appellate courts to apply when reviewing a bankruptcy court's determination of a “mixed question” of law and fact. No doubt the decision provides valuable guidance for the lower courts and practitioners, but resolution of this technical procedural issue has garnered little excitement: as one commentator put it, the majority opinion authored by Justice Kagan represents “the smallest change in the law of any opinion the Supreme Court hand[ed] down this year.” Ronald Mann, Opinion Analysis: Justices Approve Deferential Review of Bankruptcy-Court Determinations on “Insider” Status, SCOTUSblog (Mar. 5, 2018, 4:34 PM).
Ultimately, though, Village at Lakeridge is noteworthy for what the Court did not decide. The case concerned the bankruptcy judge's determination that an investor who cast the critical vote for confirmation of a cramdown plan was not a “non-statutory insider.” In granting certiorari, the Supreme Court declined to address whether the lower courts' various “non-statutory insider” tests should be refined. As concurrences from Justices Sotomayor and Kennedy emphasized, though, that issue is ripe for increased scrutiny. The test used by the Ninth Circuit in Village at Lakeridge is particularly problematic and should be reconsidered in light of the Code's intent and legislative history.
Background
Beneath this case's dull exterior lies a tale of corporate intrigue and romance (or, at least, as much as one can expect from a bankruptcy appeal). The debtor, Village at Lakeridge, LLC (Lakeridge), is a commercial real estate development in Reno, NV, wholly owned by MBP Equity Partners (MBP). Saddled with debt, Lakeridge tried to reorganize under Chapter 11. It had two major debts: over $17 million due to U.S. Bank for the balance on a loan, and $2.76 million owed to MBP. Both creditors were impaired under Lakeridge's proposed plan. U.S. Bank aggressively opposed Lakeridge's reorganization efforts.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office
A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Bit Parts
Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights
Risks of “Baseball Arbitration” in Resolving Real Estate Disputes
“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.
Disconnect Between In-House and Outside Counsel
'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.