Law Commons^™

Shared Responsibility Payment May Be A Tax Entitled To Priority Under The Bankruptcy Code, Ashton Bryan

Bankruptcy Research Library

(Excerpt)

The Patient Protection and Affordability Care Act ("ACA") provides that certain individuals must maintain minimum essential health insurance coverage throughout the year. If a person under the mandate fails to maintain the required insurance for one month or more, a shared responsibility payment ("SRP") is imposed on the taxpayer. The SRP is collected by the Internal Revenue Service ("IRS").

The Tax Cuts and Jobs Act ("TCJA") eliminated the individual mandate and reduced the SRP to zero for 2019 and thereafter. The SRPs for 2018 and prior years must be reported to the IRS on the applicable tax return. Otherwise, …

Trustee’S Broad Duty To Disclose Information To Interested Parties Under Section 704(A)(7) Of The Bankruptcy Code, Joel Cardoz

Bankruptcy Research Library

(Excerpt)

A trustee has a duty to disclose information to interested parties upon request. Section 1109(b) of title 11 of the United States Code (the “Bankruptcy Code”) includes creditors in the definition of interested parties. Trustees must obtain a court order to be excused from their duty to disclose.

A trustee’s duty of disclosure is “broad and extensive.” Courts are reluctant to excuse the trustee from their duty of disclosure unless the trustee points to a compelling “countervailing fiduciary duty … whose performance is more important than avoiding the harm resulting from withholding the information in question.”

First, this article …

Uncertainty Surrounding Takings Claimants’ Rights In Municipal Bankruptcies, Gillian Deery

Bankruptcy Research Library

(Excerpt)

Governments in the United States and its territories have the power to exercise eminent domain so long as they provide property owners with the constitutionally guaranteed “just compensation.” The Fifth Amendment’s Takings Clause specifically prescribes this remedy for parties whose property has been subject to a government taking. “Just compensation” has proven to be an issue in the context of bankruptcy, as bankruptcy law inherently allows debtors to alter their obligations to their creditors.

In response to Puerto Rico’s financial crisis, Congress enacted the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”), which created a modified version of …

Two Valid Approaches For Determining Whether “Taxes” Get Priority In Bankruptcy Cases, Jonathan Fuller

Bankruptcy Research Library

(Excerpt)

In bankruptcies, tax status often effects whether claims are entitled to priority. Thus, debates about whether charges are penalties or taxes date back to the early twentieth century. In 1930, the Supreme Court established that courts are not bound to the characterization given to a charge by the municipality that created it. Rather, courts have a duty to consider the “real nature” and “effect” of the charge. Accordingly, different circuits have implemented different approaches to make these determinations.

This Article examines the ambiguity among circuits regarding charges’ “tax” status and resulting priority entitlement. Part I outlines In re Lorber …

The Third Circuit Requires Inequitable Conduct By A Higher-Priority Creditor To Equitably Subordinate Its Debt To A Lower-Priority Creditor, Caitlyn R. Marino

Bankruptcy Research Library

(Excerpt)

Title 11 of the United States Code (the “Bankruptcy Code”) implements a basic priority system under section 507 to determine the order a bankruptcy court will distribute the assets of an estate. The classic hierarchy begins with secured creditors, then “[s]pecial classes of creditors, such as those [holding] certain claims for taxes or wages . . . [then] low-priority creditors, including general unsecured creditors . . . [followed by] equity holders . . . [who] receive nothing until all previously listed creditors have been paid in full.” Section 510(c) of the Bankruptcy Code authorizes disturbing the fundamental distribution scheme …

Small Business Owners Are Entitled To Exempt Reasonable Compensation From The Bankruptcy Estate, Rachel Mcgarry

Bankruptcy Research Library

(Excerpt)

The COVID-19 pandemic greatly impacted small business owners in the United States. In March 2020, the United States Small Business Administration (“SBA”) began aiding eligible small business owners in the form of Economic Injury Disaster Loans (“EIDL”). EIDLs were made available to small businesses that were unable to meet existing financial obligations for necessary operating costs. Those funds can be used to “make regular payments for operating expenses, including payroll.”

This article addresses whether small business owners are entitled to pay themselves reasonable compensation as earnings for their efforts, which in turn may be exempted from their future bankruptcy …

The Effect Of Rejection Of A Copyright License On A Non-Debtor Licensee, Thomas Meininger

Bankruptcy Research Library

(Excerpt)

In general, a trustee may assume, reject, or assign an executory contract of the debtor under title 11 of the United States Code (the “Bankruptcy Code”). Courts have generally held that intellectual property license agreements are executory contracts. If the license is an exclusive copyright license, it is a transfer of ownership under title 17 of the United States Code (the “Copyright Act”). Thus, some courts treat a copyright license as transfer of ownership, not an executory contract.

This article explores the rights and obligations of a non-debtor licensee when a debtor-licensor rejects a copyright license under the Bankruptcy …

A Secured Creditor’S Ability To Have An Automatic Stay Lifted Against A Single Asset Real Estate, Zachary Rozycki

Bankruptcy Research Library

(Excerpt)

The filing of a petition for relief under title 11 of the United States Code (the “Bankruptcy Code”) results in an automatic stay, which generally enjoins any creditor from taking action against the debtor or its property. Pursuant to section 362(d)(1) of the Bankruptcy Code, an automatic stay may be terminated upon a showing of “cause.” Additionally, under section 362(d)(2) a stay may be terminated as to property if the debtor has no equity in the property, and the property is not necessary to an effective reorganization. Further, under section 362(d)(3), an automatic stay may be lifted as to …

Avoidance Of An Unauthorized Post-Petition Transfer Of Intellectual Property Under Section 549 Of The Bankruptcy Code, Kathryn-Rose Russotto

Bankruptcy Research Library

(Excerpt)

Under section 549 of title 11 of the United States Code (the “Bankruptcy Code”), a trustee may avoid an unauthorized post-petition transfer of property of the debtor’s estate. Property is not limited to tangible property. Thus, a trustee can avoid a post-petition transfer of intangible assets, including intellectual property.

This article explores a trustee’s ability to avoid a post-petition transfer of intellectual property. Part I analyzes the legal standard for avoidance of unauthorized post-petition transfers under section 549. Part II examines section 549 in relation to intellectual property. Part III discusses the procedure for remedies a trustee can seek …

Non-Income Producing Properties That Never Operated May Be Single Asset Real Estate Under The Bankruptcy Code, Paul R. Spagnoli

Bankruptcy Research Library

(Excerpt)

Section 101 of title 11 of the United States Code (the “Bankruptcy Code”) includes a definition for a single asset real estate (“SARE”). A debtor that owns SARE is subject to certain special rules. In particular, the automatic stay will be lifted, upon the request of a secured creditor as to the SARE unless the debtor has either (i) begun making payments with interest at the nondefault rate to the secured creditor or (ii) has filed a plan of reorganization which has a reasonable possibility of being confirmed within a reasonable period of time. This article addresses whether a …

Debtor Needs To Have Benefitted From Fraud To Be Barred A Discharge Under 11 U.S.C. § 523(A)(2)(A), Elizabeth Tighe

Bankruptcy Research Library

(Excerpt)

Title 11 of the United States Code (the “Bankruptcy Code”) provides that a court may grant a debtor a discharge of its debts, subject to certain conditions and exceptions. One exception to dischargeability is set forth in section 523(a)(2)(A), which bars a discharge from debt “for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by . . . false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor's or an insider's financial condition.”

A key phrase in the statute is “obtained by” and courts have applied a …

Covid-19 & The Warn Act During A Bankruptcy Case, Audrey Victor

Bankruptcy Research Library

(Excerpt)

The Worker Adjustment and Retraining Notification Act (“WARN Act”) provides that “an employer shall not order a plant closing or mass layoff until the end of a 60-day period after the employer serves written notice of such order to each impacted employee.” Under the WARN Act, a plant closing is “permanent or temporary shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment….” A mass layoff is “a reduction in force which…(a) is not the result of the plant closing; and (b) results in an employment loss at …

An Analysis Of Federal Aviation Administration Enforcement Actions Against Suas Operators, Trevor Simoneau, Ryan J. Wallace, Tyler B. Spence, Jonathan Rupprecht

International Journal of Aviation, Aeronautics, and Aerospace

The Federal Aviation Administration (FAA) has promulgated regulations to govern the commercial operation of small uncrewed aircraft systems (sUAS). Compliance with these regulations is essential for maintaining safety in the National Airspace System. And if sUAS operators fail to comply with applicable federal aviation regulations, the FAA has been granted the authority to enforce these regulations. This study explores how the FAA has been exercising its enforcement power in the context of sUAS operator regulatory noncompliance. Using data obtained from a Freedom of Information Act request, this study examines 62 FAA enforcement actions levied against sUAS operators from 2012 until …

Menstrual Justice: A Human Rights Vision For Australia, Mike Armour, Dani Barrington, Helen Connolly, Beth Goldblatt, Elizabeth Hill, Danielle Howe, Margaret E. Johnson, Minnie King, Nina Lansbury, Meredith Nash, Linda Steele, Jane M. Ussher

All Faculty Scholarship

In the past year alone, news reports have shown how menstrual injustice is linked to gender inequality, a lack of economic opportunity, poor health outcomes, and human rights violations. Here is a small sampling of the unjust treatment of women and other people who menstruate: locked bathrooms at schools, inadequate supply of free period products, harmful menstruation-avoidance options for athletes, the human and economic costs of the lack of menstruation and menopause employment leave policies, and the mistreatment of people imprisoned who menstruate.

To improve women’s equality, we need menstrual justice. Menstrual justice is the achievement of dignity, liberty and …

An Unreasonable Presumption: The National Security/Foreign Affairs Nexus In Immigration Law, Anthony J. Demattee, Matthew Lindsay, Hallie Ludsin

All Faculty Scholarship

No abstract provided.

Accounting For Disability In International Humanitarian Law, Janet E. Lord

All Faculty Scholarship

The adoption of the Convention on the Rights of Persons with Disabilities (CRPD)

represents an important and (potentially) progressive development in the protection

framework under international humanitarian law (IHL). Article 11 of the CRPD

specifically obliges States to protect persons with disabilities from harm in

situations of risk, including armed conflict, consistent with IHL and human rights

law. The CRPD framework signals the need to address the traditional framing of

disability under IHL and to draw from human rights concepts in the CRPD in

order to inform the protection accorded to persons with disabilities in armed conflict.

This article is …

Fenceposts Without A Fence, Katherine E. Di Lucido, Nicholas Tabor

Vanderbilt Law Review En Banc

No abstract provided.

Contextualizing Corruption: Foreign Financing Bans And Campaign Finance Law, Lori A. Ringhand

Scholarly Works

In Bluman v. FEC, the court held that foreign nationals could be prohibited from making even independent expenditures because such expenditures risked inappropriately influencing the choices made by American voters. The result in Bluman is correct, but the court’s reasoning is wrong. Foreign financing bans are constitutional not because foreign speech may “inappropriately” influence voters, but for the same reason all successful restrictions on political speech are constitutional: because of the risk they pose to the appearance or actuality of corrupting the conduct of public officials. The sense of indebtedness or ingratiation independent expenditures can induce in elected officials may …

Silencing Litigation Through Bankruptcy, Pamela Foohey, Christopher K. Odinet

Scholarly Works

Bankruptcy is being used as a tool for silencing survivors and their families. When faced with claims from multiple plaintiffs related to the same wrongful conduct that can financially or operationally crush the defendant over the long term—a phenomenon we identify as onslaught litigation—defendants harness bankruptcy’s reorganization process to draw together those who allege harm and pressure them into a swift, universal settlement. In doing so, they use the bankruptcy system to deprive survivors of their voice and the public of the truth. This Article identifies this phenomenon and argues that it is time to rein in this destructive use …

Redeeming Spacs, Usha R. Rodrigues, Michael Stegemoller

Scholarly Works

Special purpose acquisition companies (SPA Cs) exploded in popularity in the recent past, luring both adventurous retail investors and sophisticated institutional investors. In a SPAC, a publicly traded shell corporation acquires a private target, thereby taking it public in a manner that circumvents the rigors of a traditional initial public offering (IPO). Proponents vaunt SPACs' ability to simplify the process of accessing the public markets and democratize capitalism, but in their current form, they pose risks to retail investors and to the market as a whole. Using a hand-collected dataset spanning 2010- 2021, this Article fills a gap in the …

Reflections On Place And People From Within, M. Alexander Pearl

Other Faculty Publications

No abstract provided.

Front Matter

Journal of Air Law and Commerce

No abstract provided.

From Geopolitics To Lunapolitics: A Response To Lee’S The Future Of The Law On The Moon, Andrea Harrington

Journal of Air Law and Commerce

No abstract provided.

Commentary: Lunar Court Operational And Constitutional Considerations, Megan Sieffert

Journal of Air Law and Commerce

No abstract provided.

Recent Developments In Aviation Law, Brittany C. Wakim

Journal of Air Law and Commerce

Recent Developments in Aviation Law addresses developments in aviation law from January 2022 through December 2022. This submission focuses on certain cases in the area of aviation law that are expected to have a significant impact upon, and ramifications for, the industry going forward such as: (1) the Federal Aviation Act and Federal Aviation Regulations; (2) the Air Carrier Access Act; (3) the General Aviation Revitalization Act; (4) the Airline Deregulation Act; (5) the Montreal and Warsaw Conventions; (6) the Federal Tort Claims Act; and (7) the Death on the High Seas Act. Finally, this submission also discusses recent developments …

The Department Of Transportation’S Failures In Regulating Emotional Support Animals, Jillian Doughty

Journal of Air Law and Commerce

In the past decade, the number of emotional support animals being used to treat a wide array of mental and emotional disorders has multiplied exponentially. This increase has been met with mixed reactions in the context of air travel. While some passengers are thrilled to sit next to a dog on their flight, others are frustrated due to the belief passengers with emotional support animals are exploiting a loophole to travel with their pet for free. Regardless of the differing perceptions, emotional support animals are a valid, affordable way to treat mental health illnesses without incurring negative side effects associated …

Front Matter

Journal of Air Law and Commerce

No abstract provided.

When Federal Standards Crash And Burn: The Need To Distinguish Aviation Product Liability Claims From In-Air Operations Cases, Olivia Cahill

Journal of Air Law and Commerce

If you are injured in an aviation disaster or lose a loved one in a plane crash, may you seek recovery under state law? Do federal regulations provide adequate opportunities to compensate aviation crash victims? These are questions few people think to ask themselves. A more common query is what entity regulates the more than 16 million flights that occur yearly in the U.S., and how do you know whether the aircraft you fly on are safe?

The tragic Boeing 737 MAX crashes initiated a federal oversight investigation into the Federal Aviation Administration (FAA). Industry whistleblowers revealed severe lapses in …

On Warrants & Waiting: Electronic Warrants & The Fourth Amendment, Tracy Hresko Pearl

Faculty Articles

Police use of electronic warrant (“e-warrant”) technology has increased significantly in recent years. E-warrant technology allows law enforcement to submit, and magistrate judges to review and approve, warrant applications on computers, smartphones, and tablets, often without any direct communication. Police officers report that they favor e-warrants over their traditional counterparts because they save officers a significant amount of time in applying for warrants by eliminating the need to appear in-person before a magistrate. Legal scholars have almost uniformly praised e-warrant technology, as well, arguing that use of these systems will increase the number of warrants issued throughout the United States …

Remediating Injustices For Black Land Loss: Taking The Next Step To Protect Heirs' Property, Phyllis C. Taite

Faculty Articles

No abstract provided.