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U.S. v. Miller, No. 23-824 [Arg: 12.2.2024]
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In a case of United States v. Miller, concerning a bankruptcy trustee's attempt to recover fraudulent transfers. The core dispute centers on the interpretation of Section 106(a) of the Bankruptcy Code, which waives sovereign immunity for certain code provisions, and how that waiver interacts with Section 544(b), allowing trustees to use state law to avoid transfers. The petitioner argues that 544(b) requires a pre-existing voidable transfer under state law, thus barring the claim due to sovereign immunity, while the respondent contends that the waiver in 106(a) extends to the state-law elements of the 544(b) claim, allowing the action to proceed. The justices extensively question both sides on the statutory interpretation and its practical implications.
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