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Podcast: Supreme Court Decision Syllabus (SCOTUS Podcast)
Episode: United States v. Miller (Bankruptcy)
Description: Send us Fan MailIn United States v. Miller, the Supreme Court reversed the Tenth Circuit and held that a bankruptcy trustee cannot use §544(b) of the Bankruptcy Code to claw back funds from the federal government under a state fraudulent-transfer law, due to sovereign immunity. The case arose after shareholders of a failed Utah business used $145,000 of company money to pay personal federal tax debts. The bankruptcy trustee sought to “avoid” that transfer under Utah law, invoking §544(b), which permits a trustee to assert the rights of an “actual creditor” to void certain transfers. The government argued the...