Law Office of Rogelio Solis PLLC, et al. v. Catherine Stone Curtis
Whether a transfer of property, in which a debtor has no interest recognized under applicable state law, may be avoided pursuant to 11 U.S.C. § 547
question presented to this Court relates to the proper interpretation of this limitation under section 547. In the proceedings below, both the Bankruptcy Court and the Fifth Circuit erroneously determined that whether a transfer involved an interest of a debtor in property was controlled by federal bankruptcy law, not applicable Texas law. The ruling is in direct conflict with Supreme Court precedent set forth in Erie Railroad Co. v. Tompkins, 304 U.S. 64, 78 (1938), Butner v. United States, 440 U.S. 48, 55, 99 S. Ct. 914 (1979), and recently reaffirmed in Rodriguez v. FDIC, 140 8. Ct. 718, 717-18 (2020). Specifically, the ruling below contravenes Supreme Court precedent that property interests in bankruptcy are created and defined by state law. The ruling below, instead establishes a federal common law property right that is not soundly rooted in any legitimate federal interest. The question presented is as follows: Whether a transfer of property, in which a debtor has no interest recognized under applicable state law, may be avoided pursuant to 11 U.S.C. § 547.