Merit Management Group, LP v. FTI Consulting, Inc.
| Docket No. | Argument | Opinion | Vote | Author | Term |
|---|---|---|---|---|---|
| 16-784 | Nov 6, 2017 | Feb 27, 2018 | 9-0 | Sotomayor | OT 2017 |
Holding: The Bankruptcy Code allows trustees to set aside and recover certain transfers for the benefit of the bankruptcy estate, including certain fraudulent transfers "of an interest of the debtor in property"; the Bankruptcy Code also sets out a number of limits on the exercise of these avoiding powers, including the Section 546(e) safe harbor " which, inter alia, provides that a "trustee may not avoid a transfer that is a " settlement payment " made by or to (or for the benefit of) a " financial institution .. or that is a transfer made by or to (or for the benefit of) a " financial institution " in connection with a securities contract." In the Chapter 11 bankruptcy filed by Valley View Downs and its parent company, the only relevant transfer for purposes of the Section 546(e) safe harbor is the transfer that the trustee, FTI Consulting Inc., seeks to avoid, i.e., the transfer from Valley View to Merit Management Group for the sale of Bedford Downs Management"s stock.
Judgment: Affirmed and remanded, 9-0, in an opinion by Justice Sotomayor on February 27, 2018.
SCOTUSblog Coverage
- Opinion analysis: Justices reject limits on bankruptcy recovery of fraudulently transferred assets (Ronald Mann, February 27, 2018)
- OT2017 #6: "Year of Munsingwear" (First Mondays, November 13, 2017)
- Argument analysis: Justices dubious about limiting bankruptcy courts right to recover fraudulently transferred assets (Ronald Mann, November 7, 2017)
- OT2017 #5: Oglethorpes Second Cousin (First Mondays, November 6, 2017)
- Argument preview: Justices to parse Bankruptcy Codes fine print in high-stakes dispute over recovering assets for creditors of bankrupts (Ronald Mann, October 30, 2017)
- Today's orders (Amy Howe, May 1, 2017)
- Petition of the day (Kate Howard, February 18, 2017)
| Date | Proceedings and Orders |
|---|---|
| 11/14/2016 | Application (16A492) to extend the time to file a petition for a writ of certiorari from November 28, 2016 to December 19, 2016, submitted to Justice Kagan. |
| 11/17/2016 | Application (16A492) granted by Justice Kagan extending the time to file until December 19, 2016. |
| 12/16/2016 | Petition for a writ of certiorari filed. (Response due January 19, 2017) |
| 01/19/2017 | Brief of respondent FTI Consulting, Inc. in opposition filed. |
| 02/03/2017 | Reply of petitioner Merit Management Group, LP filed. |
| 02/08/2017 | DISTRIBUTED for Conference of February 24, 2017. |
| 02/22/2017 | Rescheduled. |
| 02/27/2017 | DISTRIBUTED for Conference of March 3, 2017. |
| 02/27/2017 | Rescheduled. |
| 03/13/2017 | DISTRIBUTED for Conference of March 17, 2017. |
| 03/13/2017 | Rescheduled. |
| 03/20/2017 | DISTRIBUTED for Conference of March 24, 2017. |
| 03/20/2017 | Rescheduled. |
| 03/27/2017 | DISTRIBUTED for Conference of March 31, 2017. |
| 03/28/2017 | Rescheduled. |
| 04/10/2017 | DISTRIBUTED for Conference of April 13, 2017. |
| 04/17/2017 | DISTRIBUTED for Conference of April 21, 2017. |
| 04/24/2017 | DISTRIBUTED for Conference of April 28, 2017. |
| 05/01/2017 | Petition GRANTED. |
| 06/05/2017 | The time to file the joint appendix and petitioner's brief on the merits is extended to and including July 13, 2017. |
| 06/05/2017 | The time to file respondent's brief on the merits is extended to and including September 11, 2017. |
| 06/22/2017 | Consent to the filing of amicus curiae briefs in support of either party or of neither party from counsel for the petitioner. |
| 06/28/2017 | Consent to the filing of amicus curiae briefs in support of either party or of neither party received from counsel for the respondent. |
| 07/13/2017 | Joint appendix filed. (Statement of costs filed) |
| 07/13/2017 | Brief of petitioner Merit Management Group, LP filed. |
| 07/18/2017 | Brief amicus curiae of Opportunity Partners, L.P. filed. |
| 07/20/2017 | Brief amici curiae of Various Former Tribune and Lyondell Shareholders filed. |
| 08/31/2017 | SET FOR ARGUMENT on Monday, November 6, 2017 |
| 09/07/2017 | CIRCULATED |
| 09/11/2017 | Brief of respondent FTI Consulting, Inc. filed. (Distributed) |
| 09/18/2017 | Brief amici curiae of Tribune Company Retirees and Noteholders filed. (Distributed) |
| 09/18/2017 | Brief amicus curiae of National Association of Bankruptcy Trustees filed. (Distributed) |
| 09/18/2017 | Brief amici curiae of Bankruptcy Law Professors Ralph Brubaker, et al. filed. (Distributed) |
| 10/06/2017 | Reply of petitioner Merit Management Group, LP filed. (Distributed) |
| 11/06/2017 | Argued. For petitioner: Brian C. Walsh, St. Louis, Mo. For respondent: Paul D. Clement, Washington, D. C. |
| 02/27/2018 | Judgment is affirmed and case remanded. Sotomayor, J., delivered the opinion for a unanimous Court. |
| 04/02/2018 | JUDGMENT ISSUED. |