Eleventh Circuit Narrowly Reads a State Fee-Shifting Statute
The lawsuit was under federal law, not state law, even though Section 544(b)(1) incorporated state fraudulent transfer law.
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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.