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Expert Analysis

2nd Circ.'s Fairfield Decision Will Be Cited With Fervor

Law360, New York (January 28, 2015, 10:30 AM EST) -- On Jan. 13, 2015, the U.S. Court of Appeals for the Second Circuit denied a petition for en banc review of the Second Circuit's September 2014 panel decision holding that bankruptcy courts are required to review the propriety of a Chapter 15 debtor's transfers of property interests within the territorial jurisdiction of the U.S., even if such a transfer has already been approved in the debtor's foreign proceeding. This decision represents a departure from prior cases in the Second Circuit, in which U.S. judges often enforced foreign court orders based on principles of comity and prohibited challengers from "relitigating" such disputes in the U.S....

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