In This Issue:
Eighth Circuit Rules that Bankruptcy Code’s Cap on Lease Damage Claims Applies to Fraudulent Transfer Judgment
In Lariat Cos. v. Wigley (In re Wigley), 951 F.3d 967 (8th Cir. 2020), the U.S. Court of Appeals for the Eighth Circuit reversed a bankruptcy appellate panel decision and held that an individual debtor’s joint liability with the guarantor of a real property lease for a fraudulent transfer judgment: (i) was not discharged as a result of the lease guarantor’s prior bankruptcy discharge; but (ii) was nonetheless capped under section 502(b)(6) of the Bankruptcy Code. According to the Eighth Circuit, the fraudulent transfer judgment was “one step removed from the breach of the lease, but [the debtor’s] liability …
Read the full article at: https://www.jdsupra.com/legalnews/business-restructuring-review-july-37204/