Bankruptcy insider status
U. S. Bank N. A. v. Village at Lakeridge
In brief
The Supreme Court unanimously agreed with the Ninth Circuit and left its ruling in place (affirmed).
- Where it stands
- Decided
Decided 9-0 · March 5, 2018 · Opinion by Justice Kagan
- What it’s about
- U.S. Bank challenged a Chapter 11 plan after a buyer voted on a claim originally held by an insider, arguing the buyer should also count as an insider.
- Who it affects
- The Ninth Circuit's ruling remains in place in the bankruptcy dispute involving U.S. Bank and Village at Lakeridge.
Summary: written with AI from the case record.
What it's about
The Supreme Court unanimously left the Ninth Circuit’s ruling in place (affirmed), deciding that a bankruptcy judge’s finding of nonstatutory insider status is reviewed for clear error—a clear mistake.
The dispute arose in a Chapter 11 case over a buyer's vote on a claim originally held by an insider.
Question presented
Whether the appropriate standard of review for determining non-statutory insider status is the de novo standard of review applied by the Third, Seventh and Tenth Circuit Courts of Appeal, or the clearly erroneous standard of review adopted for the first time by the Ninth Circuit Court of Appeal in this action?
What the Court decided
Holding
Adjudged to be AFFIRMED. Kagan, J., delivered the opinion for a unanimous Court. Kennedy, J., filed a concurring opinion. Sotomayor, J., filed a concurring opinion, in which Kennedy, Thomas, and Gorsuch, JJ., joined.
- Result
- Affirmed
The vote
- Joined the judgment
- Concurred in a separate opinion
- Wrote an opinion
- Concurring · 2agreed with the result, wrote separately
- Kennedywrote separately
- Sotomayorwrote separately
What's next
The Supreme Court has finished its review, and the Ninth Circuit's ruling remains in place.
Documents
Docket activity
New analysis added
AI analysis generated: Case Briefing
AI analysis generated: Decision Record
Case data updated: summary, question_presented, generation_metadata
Case data updated: question_presented, extraction_metadata
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Opinion added: opinion
Brief added: Questions Presented
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.