In re Clinton Nurseries, No. 20-1209 (2d Cir. 2022)
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In 2017, Congress passed an amendment to the statute setting forth quarterly fees in bankruptcy cases, 28 U.S.C. Sec. 1930. The 2017 Amendment increased quarterly fees in judicial districts in which the United States Trustee Program oversees bankruptcy administration.
Debtors challenged the Bankruptcy Court's ruling rejecting their constitutional challenge to quarterly fees imposed during the pendency of their bankruptcy proceeding. The Bankruptcy Court rejected Debtors’ argument that the 2017 Amendment violated the uniformity requirement of the Bankruptcy Clause of the United States Constitution.
The Second Circuit reversed, finding the 2017 Amendment is a bankruptcy law subject to the uniformity requirement of the Bankruptcy Clause. The court also held that, under the version of Sec. 1930 in effect prior to the 2020 Act, the 2017 Amendment violated the uniformity requirement.
This opinion or order relates to an opinion or order originally issued on May 24, 2021.
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