Back in March of 2016, Tom wrote about In re The Village at Lakeridge, LLC. In that case, the Ninth Circuit Court of Appeals concluded that when MPB, the debtor’s sole member and a “statutory insider,” sold its claim to Dr. Rabkin, who was not an insider, Dr. Rabkin did not inherit MPB’s insider status, per se. Lakeridge is now at the Supreme Court. The Court heard oral argument yesterday.
To be sure, the issue before the Supreme Court is more limited. Specifically, the Court is considering whether, on appeal, the standard of review for determining insider status should be de novo review (as used by the 3rd, 7th, and 10th Circuits) or clearly erroneous review (as used by the 9th Circuit). Unfortunately or thankfully, Ronald Mann at SCOTUSblog beat us to it minutes ago with some excellent coverage of yesterdays’ argument. Thus, here you go:
- Our original post
- SCOTUSblog’s coverage
- Oral argument transcript
- Oral argument audio (to be added on Friday when available)
- Pleadings and Briefs
We’ll continue to keep an eye on Village at Lakeridge.
If you’d like to stay on top of this and other important bankruptcy issues, then you can subscribe to Plan Proponent via email here.
[Note: If you’re an email subscriber, then we highly recommend that you click the post title in the emails and read the posts directly on the website. They’re easier to read that way and embedded videos–like last night’s Vin Scully/Kirk Gibson video–will be clickable. Sorry for any inconvenience. Thanks for subscribing!]