United States Second Circuit

Judgment of the district court dismissing the trustee's claims for declaratory and injunctive relief to block the settlement of three lawsuits brought against third parties, is affirmed, where: 1) the trustee was charged with liquidating Bernard L. Madoff Investment Securities (BLMIS) and the Madoff bankruptcy estate; 2) the trustee's argument that his ability to recoup fraudulent transfers that BLMIS made to settling defendants would be hindered is neither "immediate" or "likely" under relevant case law, given that the settlements are actively being litigated and that the trustee has not shown that it is likely he would win the fraudulent conveyance actions and has not shown that he would struggle to recover a judgment as a result of the third party settlements; and 3) the trustee's interests in the third party settlements are merely contingent, thus it could not be an abuse of discretion by the district court to deny declaratory and injunctive relief.

Appellate Information

• Decided 08/08/2014
• Published 08/08/2014

Judges

• SACK

Court

• United States Second Circuit

Counsel