Monthly Archives: April 2016

Judge Houle (Bankr. C.D. Cal.) Addresses the Impact of Substantive Consolidation On Fraudulent Transfer Defenses in In re Empire Land, LLC

By Evan T. Miller, Esq.

*Update as of 7/19/2016: Since the post below on 4/18/2016, this decision has been appealed to the United States District Court for the Central District of California, and remains pending.*

Judge Houle (Bankr. C.D. Cal.) recently applied the “dominion test” to a series of transfers in the In re Empire Land, LLC bankruptcy cases, finding a material issue of fact existed as to whether the fraudulent transfer defendant could use the funds as it saw fit – hence, whether it could be a transferee of the funds. Continue reading