Siegelv.Fitzgerald
Congress allowed six federal judicial districts to opt out of the United States Trustee Program, leaving bankruptcy courts in those districts under a different fee structure from courts using the national program. During the resulting period of disparate fees, Circuit City’s liquidating trust paid the higher fees and sought relief. The Supreme Court held that the statutory scheme violated the constitutional requirement that bankruptcy laws operate uniformly. Congress could not impose materially different trustee fees on similarly situated debtors solely because of the district in which their bankruptcy cases were administered. The Court reversed the Fourth Circuit’s judgment and remanded for consideration of the appropriate remedy, including practical effects, costs, feasibility, and possible waivers by debtors who had not objected.
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