SOMETHING AMAZING – A UNANIMOUS OPINION BY THE UNITED STATES SUPREME COURT IN A BANKRUPTCY CASE, AFFIRMING AND REMANDING TO THE SEVENTH CIRCUIT REGARDING THE SAFE HARBOR OF 11 U.S.C. § 546(e): MERIT MANAGEMENT GROUP, LP v. FTI CONSULTING, INC.

Hon. Judith K. Fitzgerald (Ret.)
Tucker Arensberg, P.C.
Professor in Practice, University of Pittsburgh School of Law

Once in a while, a Supreme Court opinion crosses my desk that I cannot ignore. Such was the case today. The United States Supreme Court issued its opinion in Merit Management, LP v. FTI Consulting, Inc., a unanimous opinion made more exciting by the fact that it affirmed the Seventh Circuit’s decision regarding the scope of the safe harbor provisions of 11 U.S.C. § 546(e) in a case that arose from a failed harness racing endeavor. (The opinion can be found here). Perhaps even more surprising, the Court interpreted a section of the Bankruptcy Code that led to a split in the circuits using a “plain meaning” approach.