What About the Bar Exam After the 2020 Dust Settles?

VIKRAM DAVID AMAR

Illinois law dean and professor Vikram David Amar comments on some of the questions commentators and analysts are, or will soon be, asking—specifically why we have bar exams for legal licensure, and, assuming we retain them, what they should look like going forward. Amar observes the limitations of the so-called diploma privilege advocated by some and suggests that states adopt greater interstate uniformity in their bar exams, shift toward more performance (as opposed to memorization) exams, and move away from being so time pressured.

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Kelley v. Boosalis

Court: US Court of Appeals for the Eighth Circuit

Dockets: 19-1079, 19-2376, 19-2382, 19-2452

Opinion Date: September 11, 2020

Judge: James B. Loken

Areas of Law: Bankruptcy

This case arose from a Ponzi scheme perpetrated by Thomas Petters from 1994 to 2008 through his company, PCI. These appeals involve the Trustee’s separate claw back claims against defendants. The Trustee asserted claims under 11 U.S.C. 544(b)(1), which permits a trustee to "avoid any transfer of an interest of the debtor . . . that is voidable under applicable law by a creditor holding an unsecured claim." In this case, the applicable law is the Minnesota Uniform Fraudulent Transfers Act (MUFTA). The Eighth Circuit held that the district court erred in applying the Supreme Court of Minnesota's controlling MUFTA decision in Finn v. Alliance Bank, 860 N.W.2d 638 (Minn. 2015), and the Minnesota law of void contracts. Therefore, the court reversed summary judgment against Papadimos and Kanios. The court also reversed and remanded in the Boosalis case because the district erred in instructing the jury on the MUFTA elements of "good faith" and "reasonably equivalent value." In both cases, the court held that the district court erred in concluding that Minnesota rather than federal law governed the award of prejudgment interest. The court rejected defendants' other arguments.

North Dakota v. Bala

Court: US Court of Appeals for the Eighth Circuit

Docket: 20-6002

Opinion Date: September 16, 2020

Judge: Dow

Areas of Law: Bankruptcy

The Bankruptcy Court denied the State's claim filed on behalf of unnamed charities for lack of standing, and denied the State's claim on behalf of Team Makers on the equitable doctrine of laches. The Bankruptcy Appellate Panel (BAP) held that the State failed to show the requisite injury to a substantial segment of North Dakota's population, and affirmed its ruling that the State did not have parens patriae standing to file a claim on behalf of Team Makers and other charities. While the panel agreed with the Bankruptcy Court that finality is a very important interest, particularly in a case of this duration, the panel held that laches does not apply to tardily-filed claims that are filed in time to permit distribution under Section 726(a) of the Bankruptcy Code. Accordingly, the panel affirmed in part, reversed in part, and remanded for reconsideration.

Gardens Regional Hospital & Medical Center Liquidating Trust v. California

Court: US Court of Appeals for the Ninth Circuit

Docket: 18-60016

Opinion Date: September 16, 2020

Judge: Daniel P. Collins

Areas of Law: Bankruptcy

After Gardens Regional filed for bankruptcy, the State deducted certain "fees"—which Gardens Regional had failed to pay to the State—from various payments that the State was obligated to make to Gardens Regional under its Medicaid program. The bankruptcy court and the Ninth Circuit Bankruptcy Appellate Panel (BAP) both agreed that the deductions were permissible recoupments rather than impermissible setoffs. Although the bankruptcy court and the BAP held that all of the State's withholdings of unpaid Hospital Quality Assurance Fee (HQAF) amounts constituted legitimate instances of equitable recoupment rather than setoff, the Ninth Circuit held that the bankruptcy court and BAP's holding rested on an overly generous conception of what qualifies as "the same transaction or occurrence" for purposes of recoupment. The test remains whether the relevant rights being asserted against the debtor are sufficiently logically connected to the debtor's countervailing obligations such that they may be fairly said to constitute part of the same transaction. The panel affirmed the judgment of the BAP insofar as it holds that California's deduction of unpaid HQAF assessments from the supplemental payments made to Gardens Regional was permissible under the doctrine of equitable recoupment, but the panel reversed its judgment as to the fee-for-service payments. The panel remanded to the BAP with instructions to remand to the bankruptcy court for further proceedings.