Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.
A creditor lost a dischargeability suit by failing to call the right witnesses to prove that a lawyer’s trust account was used to hide assets.
Even though the debtor defaulted, Judge Christopher Klein held a trial and ruled that the lender had not relied on a false loan application.
A nonprecedential opinion applies Fifth Circuit authority to achieve a result that’s equitable for the debtor and creditors, and maybe also for a personal injury defendant.
Fifth Circuit should decide en banc whether nondebtor releases are permissible in receiverships but not in bankruptcy cases.
The Texas UFTA Has No ‘Futility Defense’ When a Transferee Is on Inquiry Notice