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ABI Journal

106

Supreme Court Roundup

Bankruptcy Code

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Recent Case Law

Bankruptcy Code

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IRS Has No Sovereign Immunity to Bar a Fraudulent Transfer Suit Under Section 544(b)

The circuits are now split 3/1, with the majority finding a waiver of sovereign immunity under Section 544(b)(1) for lawsuits by a trustee based on claims that an actual creditor could not have brought outside of bankruptcy.

Supreme Court: The Bankruptcy Code Waived Tribes’ Sovereign Immunity

The Supreme Court resolved a split of circuits in an opinion that could give support to the notion that arbitration agreements are not enforceable in bankruptcy.