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Kenneth N. Klee and Whitman L. Holt on Supreme Court's Holding in U.S. Bank National Association v. Village at Lakeridge, LLC

LexisNexis Emerging Issues Analysis, 2018 Emerging Issues 8628
March 2018

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.