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Justia Weekly Opinion Summaries

Bankruptcy
July 17, 2020

Table of Contents

Rajala v. Spencer Fane

Bankruptcy

US Court of Appeals for the Tenth Circuit

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Bankruptcy Opinions

Rajala v. Spencer Fane

Court: US Court of Appeals for the Tenth Circuit

Docket: 19-3226

Opinion Date: July 10, 2020

Judge: Carolyn Baldwin McHugh

Areas of Law: Bankruptcy

Eric Rajala, the bankruptcy trustee for Generation Resources Holding Company, LLC, initiated separate adversary proceedings against Spencer Fane LLP and Husch Blackwell LLP (collectively, “the firms”) to recover legal fees he alleged were proceeds of a fraudulent transfer. The bankruptcy court denied the firms’ motions to dismiss, but then certified the decisions for immediate appeal. The Tenth Circuit consolidated the appeals and agreed to hear them on an interlocutory basis. The Tenth Circuit concluded that because the firms were not “transferees,” as that term is used in 11 U.S.C. 550, the Court reversed and remanded with instructions to dismiss Rajala’s adversary complaints. Consequently, Rajala may not recover the fees from the firms.

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