The Second Circuit split with the Fourth and Fifth Circuits by holding that the increase in fees for the U.S. Trustee system was unconstitutional because it was not imposed simultaneously in the two states with bankruptcy administrators.
California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.
The Third Circuit found loopholes in the purchase agreement permitting the buyer to assert an administrative claim, even though the breakup fee was disallowed.
