LexisNexis Emerging Issues Analysis, 2018 Emerging Issues 8628

In a 9—0 decision authored by Justice Kagan, the Supreme Court of the United States affirms the Ninth Circuit Court of Appeals’ use of a “clear error” standard of appellate review regarding one prong (whether a person transacted with the debtor at arm’s length) of that circuit’s test for determining non-statutory “insider” status in bankruptcy cases.  The decision is carefully drafted to address only the very discrete question with respect to which the Supreme Court granted a writ of certiorari.

This commentary analyzes the holding and implications of the Village at Lakeridge opinion.