United States Ninth Circuit

In bankruptcy proceedings, district court's affirmance of the bankruptcy court's summary judgment in a fraudulent conveyance action against a nonclaimant to the bankruptcy estate is affirmed where: 1) the public rights exception to the rule of Article III adjudication does not encompass federal-law fraudulent conveyance claims, even though Congress designated such claims as core bankruptcy proceedings, and 11 U.S.C. section 157(b)(1) provides bankruptcy courts the power to hear fraudulent conveyance cases and to submit reports and recommendations to the district courts; 2) the right to a hearing in an Article III court is waivable, and in this case, the nonclaimant consented to the bankruptcy judge's adjudication of the fraudulent conveyance claim by failing to object until the case reached the court of appeals; 3) the trustee satisfied all elements of a constructively fraudulent transfer of the debtor's property under 11 U.S.C section 548 and under state law; and 4) because the nonclaimant was a successor corporation of the debtor, it was liable for its debts.

Appellate Information

• Decided 12/04/2012
• Published 12/04/2012

Judges

• Paez

Court

• United States Ninth Circuit

Counsel