U.S. Supreme Court Bankruptcy Roundup | Jones Day


Supreme Court to Resolve Circuit Split on Constitutionality of U.S. Trustee Fee Hike

This Term, the U.S. Supreme Court accepted certiorari in Siegel v. Fitzgerald (In re Circuit City Stores, Inc.), 996 F.3d 156 (4th Cir. 2021), cert. granted, No. 21-441 (U.S. Jan. 10, 2022), in order to resolve the growing circuit split over the constitutionality of the 2017 amendment to 28 U.S.C. § 1930(a)(6) (“2017 Amendment”), which greatly increased quarterly fees charged by the United States Trustee (“UST”) in large chapter 11 cases. The 2017 Amendment, enacted initially as a temporary measure as part of a large appropriations bill to redress projected UST budget shortfalls, replaced the prior scale that capped quarterly fees at $30,000 for disbursements over $30 million with a new scale that assessed a 1% fee on disbursements of $1 million or more up to a cap of $250,000 for quarterly disbursements of at least $25 million. See Additional…

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