In re Costas
Posted: Fri Feb 06, 2009 5:12 pm
Just got this in my LACBA Daily Briefing. Should be of some interest.
NINTH U.S. CIRCUIT COURT OF APPEALS
-Civil Procedure-
Disclaimer by Arizona debtor relinquishing claim to trust property did
not qualify as a "transfer...of an interest of the debtor in property"
that was avoidable as an actual or constructively fraudulent transfer
under 11 U.S.C. Sec. 548(a)(1) because Arizona's relation-back rule
provides that disclaimant neither transfers nor possesses an interest
in disclaimed property; "right to channel" property to third party via
disclaimer is not an "interest...in property." Federal interest
exception did not override normal rule of state law deference where
application of generic interests identified by trustee to do so would
interfere with goals of avoiding uncertainty, forum shopping, and
windfall recoveries.
In re Costas - filed February 6, 2009
Cite as 0616520
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