April 2024
The Fifth Circuit answered one of the two questions being posed at this year’s Duberstein Moot Court Competition.
The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.
The lawsuit was under federal law, not state law, even though Section 544(b)(1) incorporated state fraudulent transfer law.