Parsing The 4th Circ. Stance In Campbell V. Hanover

Law360, New York (April 26, 2013, 5:02 PM ET) -- In Campbell v. Hanover Ins. Co. (In re ESA Envtl. Specialists Inc.), the Fourth Circuit recently confirmed the applicability of the earmarking doctrine within the Fourth Circuit.[1] In doing so, the Fourth Circuit clarified that the earmarking defense only applies if the transfer at issue was used to satisfy an antecedent debt.[2]

In ESA, the Fourth Circuit concluded that the transfer at issue did not satisfy an antecedent debt, and therefore the contemporaneous exchange for new value defense applied, not the earmarking doctrine.[3] The Fourth Circuit,...
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