Parsing The 4th Circ. Stance In Campbell V. Hanover
April 26, 2013, 5:02 PM EDT
Law360, New York (April 26, 2013, 5:02 PM EDT) -- 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. 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.
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. The Fourth Circuit,...