Constructive Trust Claims in Bankruptcy: Beneficiary vs. Creditor

Analyzing State Law Criteria, Asserting Rights Against "Trust" Assets, Recent Case Law

A live 90-minute CLE webinar with interactive Q&A


Thursday, August 2, 2018

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

This CLE webinar will examine state and bankruptcy law considerations in imposing a constructive trust and the treatment of constructive trust claims vs. those of general unsecured creditors. The panel will compare the approaches courts have taken in reconciling these interactions, and provide a practical guide to asserting constructive trusts in bankruptcy.

Description

Constructive trusts have presented a challenge in bankruptcy because they can remove assets from the bankruptcy estate to the detriment of unsecured creditors. Approaches to addressing constructive trusts in bankruptcy vary among the circuits, creating uncertainty for constructive trust beneficiaries as to whether a debtor’s bankruptcy will leave them as beneficiaries or alter their status to that of a creditor. In the face of these varying approaches, counsel must know how best to assert constructive trust claims in bankruptcy.

Our panel will examine state and bankruptcy law considerations in imposing (or refusing to impose) a constructive trust and the treatment of constructive trust claims vis-à-vis those of general unsecured creditors. The panel will compare the approaches courts have taken in weighing the interests of ordinary creditors with those of parties seeking a constructive trust.

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Outline

  1. Constructive trusts defined—state law remedies
  2. Authority for asserting constructive trust rights under the Bankruptcy Code
  3. Analytical approaches of the different circuit courts to enforcing constructive trusts
  4. Best practices for asserting constructive trust rights in bankruptcy

Benefits

The panel will review these and other relevant issues:

  • What are the criteria for establishing a constructive trust under state law? How do the states vary in the analysis?
  • What is the authority under the bankruptcy code for imposing a constructive trust, and what is the impact on the debtor’s estate?
  • Are constructive trusts subject to the strong-arm powers of a bankruptcy trustee?
  • Can a bankruptcy court approve a sale free and clear of a constructive trust claim?

Faculty

Liesemer, Jeffrey
Jeffrey A. Liesemer

Member
Caplin & Drysdale

Mr. Liesemer's practice focuses on complex civil and commercial litigation, with an emphasis in bankruptcy,...  |  Read More

Wehner, James
James P. Wehner

Member
Caplin & Drysdale

Mr. Wehner's principal practice area is complex civil litigation, with particular emphasis on insolvency...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

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$149

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DVD

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