The Supreme Court ruled unanimously yesterday that the increase in fees payable to the U.S. Trustee system in 2018 violated the uniformity aspect of the Bankruptcy Clause of the Constitution because it was not immediately applicable in the two states with Bankruptcy Administrators rather than U.S. Trustees, according to a special edition of Rochelle's Daily Wire. The opinion for the Court by Justice Sonia Sotomayor said that the Uniformity Clause “is not a straightjacket: Congress retains flexibility to craft legislation that responds to different regional circumstances that arise in the bankruptcy system.” She remanded for lower courts to determine the proper remedy. Although Justice Sotomayor pointedly said that her opinion “does not today address the constitutionality of the dual scheme of the bankruptcy system itself,” some of her language could be read to imply that the dual system is constitutionally questionable. Read the full column.
ABI is organizing a special webinar on Thursday, June 9, at 1 p.m. ET to examine the Supreme Court’s decision in Siegel v. Fitzgerald. Look for a complimentary registration link to be available today on ABI social media and in tomorrow’s Daily Headlines e-mail.
