Zazzali v. Swenson (In re DBSI Inc.)
Jan
27
2012
Ruling
Sovereign immunity did not apply to prevent trustee's fraudulent transfer claims against state tax agencies.
Procedural posture
Trustee of a liquidation trust created by a bankruptcy plan brought an adversary proceeding against defendant state tax agencies seeking to recover allegedly fraudulent transfers under the law of a state pursuant to 11 U.S.C.S. § 544(b). The agencies moved to dismiss the claims based on state sovereign immunity.
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Court
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