Circuits on Who Can Prosecute Estate Avoidance Claims II

In Cybergenics, the Third Circuit read Hartford Insurance to compel the conclusion that Bankruptcy Code ?544(b) similarly authorizes only a trustee or Chapter 11 debtor-in-possession to act within the parameters of the statute. Acknowledging that ?the facts of Hartford Underwriters did not present the [same] issue,? the Court of Appeals found nevertheless that the same principles of statutory construction applied by the Supreme Court to exclude parties other than the trustee from proceeding under ?506(c) prohibit anyone other than the trustee from suing under ?544(b) because the operative language of the statutes is identical.

Provided by: Jones Day Topic: Software Date Added: Nov 2002 Format: PDF

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