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29 Am. Bankr. Inst. L. Rev. 83 (2021)
Non-Statutory Insiders under the Bankruptcy Code after U.S. Bank National Association v. the Village at Lakeridge, LLC

handle is hein.journals/abilr29 and id is 99 raw text is: Non-Statutory Insiders Under the Bankruptcy Code After U.S. Bank National Association v. The Village at Lakeridge, LLC SCOTT F. NORBERG* TABLE OF CONTENTS In tro d u ctio n ..........................................................................................................8 4 I. The Story Behind Lakeridge.............................................................................87 A. The Players .................................................................................................87 B. The Ground Rules........................................................................................88 C. The Debtor's Plan and USB's Objections in the Bankruptcy Court and on A p p eal ................................................................................................. . . 9 0 D. The Supreme Court's Odd Predicament........................................................97 E. The Settlement After Remand......................................................................99 II. The Legislative History of the Bankruptcy Code Definition of Insider........100 III. Pre-Code Case Law .....................................................................................102 IV. The Circuit Split on the Test for Non-Statutory Insider Status......................104 A. The Different Circuit Court Approaches to Non-Statutory Insider Status.... 104 1. The majority conjunctive test..................................................................104 2. The closeness approach ..........................................................................106 3. The Seventh Circuit's several approaches................................................110 B. Explanations of the Bankruptcy Code Concept of Insider...........................111 V. The Case for a Comparative Test ..................................................................114 A. The Conjunctive Test is Misconceived.......................................................114 B. The Comparative Approach is Supported by the Text of Section 101(31) and its Legislative History................................................................................116 C. Insiders are Persons or Entities with a Fiduciary or Fiduciary-Like Relationship with the Debtor .....................................................................118 1. The text of the definition of insider......................................................119 2. Legislative history and pre-Code case law ..............................................120 3. The definition of insider in the context of the Bankruptcy Code provisions in which it is used..................................................................121 VI. What Will Be the Standard of Review on a Comparative Test? ....................125 Conclusion.........................................................................................................129 83 * Professor of Law, Florida International University College of Law. I am grateful to Jade Manning, FIU Law class of 2021, for her excellent research assistance.

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