Tag Archives: Bankruptcy Court for the Central District of California

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