Fraudulent Transfers

Supreme Court to Rule on Waiver of Sovereign Immunity for Suits Under Section 544(b)(1)

To resolve a circuit split, the Supreme Court has agreed to decide whether a trustee can sue the government to recover a fraudulent transfer under state law when sovereign immunity would bar an ‘actual creditor’ from suing.

As Subsequent Transferees, Churches Must Cough Up Fraudulent Transfers

Judge Huennekens explained that a church’s immunity for receipt of a constructively fraudulent transfer only applies if the transferor was an individual and the transferor was the debtor.

The Eleventh Circuit Rails Against ‘Prudential Standing’

Three Eleventh Circuit Judges would have their appeals court sit en banc to stop dismissing for lack of standing when dismissal should be resulting from failure to state a claim under state law.