If you are unable to see this message, click here to view it in a web browser.

Justia Weekly Opinion Summaries

Bankruptcy
November 6, 2020

Table of Contents

Hobbs v. Buffets, LLC

Bankruptcy, Constitutional Law

US Court of Appeals for the Fifth Circuit

COVID-19 Updates: Law & Legal Resources Related to Coronavirus

Click here to remove Verdict from subsequent Justia newsletter(s).

New on Verdict

Legal Analysis and Commentary

Pope Francis’s Statement Endorsing Same-Sex Civil Unions Undermines the Moral Legitimacy and Legal Arguments in Fulton v. City of Philadelphia

DAVID S. KEMP, CHARLES E. BINKLEY

verdict post

David S. Kemp, a professor at Berkeley Law, and Charles E. Binkley, MD, the director of bioethics at Santa Clara University’s Markkula Center for Applied Ethics, consider the implications of Pope Francis’s recently revealed statement endorsing same-sex civil unions as they pertain to a case currently before the U.S. Supreme Court. Kemp and Binkley argue that the Pope’s statement undermines the moral legitimacy of the Catholic organization’s position and casts a shadow on the premise of its legal arguments.

Read More

Stigma and the Oral Argument in Fulton v. City of Philadelphia

LESLIE C. GRIFFIN

verdict post

UNLV Boyd School of Law professor Leslie C. Griffin explains why stigma is a central concept that came up during oral argument before the Supreme Court in Fulton v. City of Philadelphia. Griffin points out that some religions have long supported racial discrimination, citing their religious texts, but courts prohibited such discrimination, even by religious entities. Griffin argues that just as religious organizations should not enjoy religious freedom to stigmatize people of color, so they should not be able to discriminate—and thus stigmatize—people based on sexual orientation.

Read More

Bankruptcy Opinions

Hobbs v. Buffets, LLC

Court: US Court of Appeals for the Fifth Circuit

Docket: 19-50765

Opinion Date: November 3, 2020

Judge: Gregg Costa

Areas of Law: Bankruptcy, Constitutional Law

This case concerns challenges to a 2017 law imposing a temporary but substantial increase in quarterly fees for large Chapter 11 debtors. The Fifth Circuit held that the fee increase is constitutional and applies in this case. The court agreed with the bankruptcy court and its sister circuits that "disbursements" includes all payments a debtor makes. The court explained that, because "disbursements" include all the payments Buffets made in 2018, its roughly $60 million of quarterly disbursements qualify for the heightened fees. The court concluded that the Amendment applies to cases like Buffets' that were pending when the Amendment took effect. The court explained that the 2017 Amendment is prospective and the court found no uniformity problem. The court held that the fee increase easily survives rational basis review where it addresses a shortfall in the U.S. Trustee System Fund, the fee increase is directly tied to the deficit, and it is reasonable to have large debtors shore up the system's finances as their cases typically place greater burdens on the system. Furthermore, taxes and user fees are not takings under the Fifth Amendment. In this case, Buffets had disbursements exceeding $1 million for each of the first three 2018 quarters. The court concluded that the fee increase applies to those disbursements even though the case was pending before the increase became law and the fee increase is constitutional. Accordingly, the court reversed and remanded for modification of the fee orders.

Read Opinion

Are you a lawyer? Annotate this case.

About Justia Opinion Summaries

Justia Weekly Opinion Summaries is a free service, with 63 different newsletters, each covering a different practice area.

Justia also provides 68 daily jurisdictional newsletters, covering every federal appellate court and the highest courts of all US states.

All daily and weekly Justia newsletters are free. Subscribe or modify your newsletter subscription preferences at daily.justia.com.

You may freely redistribute this email in whole.

About Justia

Justia is an online platform that provides the community with open access to the law, legal information, and lawyers.

Justia

Contact Us| Privacy Policy

Unsubscribe From This Newsletter

or
unsubscribe from all Justia newsletters immediately here.

Facebook Twitter LinkedIn Justia

Justia | 1380 Pear Ave #2B, Mountain View, CA 94043