Avoidance Actions Are Estate Property that May Be Sold, the Fifth Circuit Says
The Fifth Circuit answered one of the two questions being posed at this year’s Duberstein Moot Court Competition.
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Whether a Fraudulent Transfer Claim Is ‘Direct’ or ‘Derivative’ Depends on Point of View
A D&O policy covering securities claims doesn’t provide coverage for a claim resulting from a fraudulent transfer, the Delaware Supreme Court rules.
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Earmarking Requires Dominion/Control and No Diminution of the Estate, Circuit Says
Invoking Supreme Court authority, the Tenth Circuit says that inferences from the evidence are reviewed for clear error just like findings of fact themselves.
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Substantially Equivalent Value Not Required to Defeat Equitable Disgorgement
The standard for defeating equitable disgorgement is lower than the proof required to fend off receipt of a fraudulent transfer.
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Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer
The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.
Judge Goldblatt on the Imputation of Fraudulent Intent to a Delaware Corporation
The fraudulent intent of an individual who controls a corporation can be imputed to the corporation itself, even if the board is unaware of fraud.
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