Case Roundup 2.0

3rd Circuit

In re: Fruehauf Trailer Corp. (04/12/06 - No. 05-1374)

A decision in a bankruptcy case finding that payouts under an amendment to a pension plan would be a fraudulent transfer under 11 U.S.C. section 548 which the plan administrator could avoid is affirmed over claims of error regarding: 1) a determination that the administrator had a cognizable property interest in a pension plan surplus; 2) the proper test for fraudulent transfers; and 3) assignment of the burden of proof.

9th Circuit

Norfolk S. Ry. Co. v. Consol. Freightways Corp. (04/10/06 - No. 04-55717)

Dismissal of a complaint claiming that bankruptcy debtor, an interstate motor carrier, held certain funds in trust for plaintiff, an interline freight railroad, under the "interline trust doctrine" is affirmed since the creation of a new federal common law rule imposing a constructive trust for the payment of interline balances in bankruptcy was not justified.

Estate of Spirtos v. Estate of Spirtos (04/12/06 - No. 03-56405)

Section 323 vests the bankruptcy trustee with the exclusive right to sue on behalf of the estate.

Harrison v. Emerald Outdoor Adver., LLC (04/13/06 - No. 04-35647)

Bankruptcy Court held that a lease in tribal land had priority over deed of trust becaise it had been recorded in the BIA Title Plant first. Determination was reversed becaise state law must control to determine priority and under state's standard race-notice statute priority went to the recording in the county in which the land was located.

District of Columbia

Worldwide Moving & Storage, Inc. v. Dist. of Columbia (04/14/06 - No. 04-7184)

Dismissal (for lack of standing) of an action seeking to enjoin the District of Columbia from imposing a surety bond requirement on a federally licensed motor carrier or its employees is affirmed on grounds of Younger abstention where the dispute was being litigated in the local courts of the District of Columbia.