From the Chair continued from page 16
business in the Fall of 1970. Be it a tax, a tariff or a bribe, any chaos in international trade is challenging. It was a bummer. My first real world lesson in bankruptcy and the international trade wars.
See you in Chicago in September at the All-Fellows Luncheon!
From the Foundation continued from page 7
8th Circuit Director: Eric Johnson 9th Circuit Director: Mark Shinderman 9th Circuit Director: Steve Berger 10th Circuit Director: Mike Johnson 11th Circuit Volunteer: Richard Carmody 11th Circuit Director: Jay Bender 11th Circuit Director: Leyza Florin We thank those leaving our board and welcome new members as we celebrate our success this year. A special thanks to our colleagues and friends transitioning off our board, including Foundation Secretary, Lisa Schweitzer, and Foundation Directors Jay Goffman, Mark Shinderman, Jay Bender, Leyza Florin and Lynn Tavenner. Each of them has helped the Foundation further its mission. We are a better organization thanks to them. And a hearty welcome to our new Board members: 2nd Circuit Director: Natasha Labovitz 2nd Circuit Director: Brett Miller 4th Circuit Director: Paula Beran 9th Circuit Director: Jeff Bjork 11th Circuit Director: Jordi Guso 11th Circuit Director: Jayna Lamar
Looking forward to working with all of you this year to continue our good work.
Finally, a special thanks to Vince Lazar and Jenny Cudahy who are constantly keeping me on my toes!
The
Splits from page 15
560( 5th Cir. 2006), based on its deference to the Texas Supreme Court as the ultimate interpreter of TUFTA, while reaffirming its earlier decision as controlling law of this question under Section 548.
Weighing in again after Janvey, the Eleventh Circuit in In re Caribbean Fuels Am., Inc., 688 Fed. App’ x, 890( 11th Cir. 2017), addressed this issue not in a Ponzi scheme case, but in a case where the debtor used his rented home both as a residence and as a home office for his company. When the company filed bankruptcy, since it had paid the lease payments, the trustee sued alleging that the company had not received reasonably equivalent value under Section 548 for the payments it made on the lease because these payments only
partially benefited the company. Id. at 892- 93. In reversing the Bankruptcy Court and remanding the case for further proceedings, the Eleventh Circuit reiterated the objective standard for determining value under Section 548:“ The question is not whether the debtor subjectively benefitted from the property it received; the operative question is whether the property, good or services provided had objective value.” Id. at 894- 95. The case was reversed and remanded.
So this split is not only between the Fifth and Eleventh Circuits but also between different states within the Fifth Circuit interpreting fraudulent transfer law under state, rather than federal, bankruptcy law. And the most common cases in which this question is raised are Ponzi scheme cases, which is where this split began in Utah almost 40 years ago.
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