Click here to load reader

JPM Amicus (1)

  • View
    808

  • Download
    0

Embed Size (px)

DESCRIPTION

jpm amicus

Text of JPM Amicus (1)

  • 505680-0299-13477-Active.18203941.4 11/16/2015 2:20 PM

    NO. 15-0489 IN THE SUPREME COURT OF TEXAS

    RALPH S. JANVEY, in his Capacity as Court-Appointed Receiver

    for the Stanford International Bank, Limited, et al.;

    OFFICIAL STANFORD INVESTORS COMMITTEE;

    Plaintiffs-Appellants,

    vs.

    THE GOLF CHANNEL, INCORPORATED;

    TGC, L.L.C., doing business as Golf Channel,

    Defendants-Appellees.

    Certified Question from the United States Court of Appeals for the Fifth Circuit

    Case No. 13-11305

    BRIEF OF AMICUS CURIAE JPMORGAN CHASE BANK,

    NATIONAL ASSOCIATION, IN SUPPORT OF APPELLEES

    David J. Woll (pro hac vice pending)

    Email: [email protected]

    Isaac Rethy (pro hac vice pending)

    Email: [email protected]

    SIMPSON THACHER & BARTLETT LLP

    425 Lexington Avenue

    New York, NY 10017-3954

    (212) 455-2000

    Fax: (212) 455-2502

    James J. White (pro hac vice pending)

    Email: [email protected]

    UNIVERSITY OF MICHIGAN LAW SCHOOL

    625 South State Street

    Ann Arbor, MI 48109-1215

    (734) 764-9325

    Mary Angela Jenkins

    Texas Bar No. 24008612

    Email: [email protected]

    Daren Wayne Perkins

    Texas Bar No. 15784320

    Email: [email protected]

    JPMORGAN CHASE BANK, N.A.

    700 North Pearl Street, 15th Floor

    Dallas, TX 75265

    (214) 965-3778

    Fax: (214) 965-4024

    Attorneys for Amicus Curiae

    JPMorgan Chase Bank, N.A.

  • i

    TABLE OF CONTENTS

    TABLE OF AUTHORITIES .................................................................................... ii

    STATEMENT OF INTEREST .................................................................................. 1

    CERTIFIED QUESTION .......................................................................................... 2

    SUMMARY OF THE ARGUMENT ........................................................................ 2

    BACKGROUND ....................................................................................................... 7

    ARGUMENT ............................................................................................................. 9

    I. THE FIFTH CIRCUITS PONZI SCHEME JURISPRUDENCE IS CONTRARY TO TUFTA ............................................................................... 9

    A. Fraudulent Transfer Claims Are Not Fraud Claims ............................ 10

    B. The Fifth Circuits Ponzi Scheme Jurisprudence Is Unsupported By Persuasive Authority ...................................................................... 20

    C. The Fifth Circuits Conclusive Presumption Of Fraudulent Intent Is Inconsistent With TUFTA .................................................... 27

    1. TUFTA Rejects Presumptions Of Intent .................................. 27

    2. TUFTA Imposes Liability On A Transaction-By-

    Transaction Basis ...................................................................... 29

    3. The Presumption Of Fraudulent Intent Is Bad Public

    Policy......................................................................................... 32

    II. ARMS LENGTH TRANSACTIONS AT MARKET RATES PROVIDE VALUE UNDER SECTION 24.009(a) ...................................... 33

    CONCLUSION ........................................................................................................ 42

    CERTIFICATE OF SERVICE ................................................................................ 44

    CERTIFICATE OF COMPLIANCE ....................................................................... 45

  • ii

    TABLE OF AUTHORITIES

    Cases

    Allard v. Flamingo Hilton (In re Chomakos), 69 F.3d 769 (6th Cir. 1995) ...............................................................................41

    Am. Cancer Socy v. Cook, 675 F.3d 524 (5th Cir. 2012) .............................................................................29

    B.E.L.T., Inc. v. Wachovia Corp., 403 F.3d 474 (7th Cir. 2005) ...................................................................... 17, 31

    Badger State Bank v. Taylor, 688 N.W.2d 439 (Wis. 2004) .............................................................................37

    Balaber-Strauss v. Sixty Five Brokers (In re Churchill Mortg. Inv. Corp.), 256 B.R. 664 (Bankr. S.D.N.Y. 2000) ..............................................................24

    Bank of Am., N.A. v. Kapila (In re Pearlman), 478 B.R. 448 (M.D. Fla. 2012) ............................................................................ 9

    Bear, Stearns Sec. Corp. v. Gredd (In re Manhattan Inv. Fund, Ltd.),

    397 B.R. 1 (S.D.N.Y. 2007) ................................................................... 9, 25, 30

    BFP v. Resolution Trust Corp., 511 U.S. 531 (1994) ...........................................................................................35

    Boston Trading Group v. Burnazos, 835 F.2d 1504 (1st Cir. 1987) ............................................................... 15, 16, 33

    Bowman v. El Paso CGP Co., LLC, 431 S.W.3d 781 (Tex. App.Houston [14th Dist.] 2014, pet. denied) ............27

    Breeden v. Ne. Binding Sys. (In re Bennett Funding Grp., Inc.),

    253 B.R. 316 (Bankr. N.D.N.Y. 2000) ..............................................................22

    Brennan v. Slone (In re Fisher), 296 F. Appx. 494 (6th Cir. 2008) ......................................................................22

    Carney v. Lopez, 933 F. Supp. 2d 365 (D. Conn. 2013) ................................................................31

  • iii

    Christians v. Crystal Evangelical Free Church (In re Young),

    152 B.R. 939 (D. Minn. 1993) ...........................................................................36

    Cunningham v. Brown, 265 U.S. 1 (1924) ...............................................................................................26

    Cuthill v. Greenmark, LLC (In re World Vision Entmt, Inc.), 275 B.R. 641 (Bankr. M.D. Fla. 2002) ..............................................................24

    Davis v. Schwartz, 155 U.S. 631 (1895) ...........................................................................................19

    Englert v. Englert, 881 S.W.2d 517 (Tex. App.Amarillo 1994, no writ) ....................... 12, 28, 41

    Equip. Acquisition Res., Inc. v. PlainsCapital Leasing, LLC

    (In re Equip. Acquisition Res., Inc.), 502 B.R. 784 (Bankr. N.D. Ill. 2013) ................................................................30

    Finn v. Alliance Bank, 860 N.W.2d 638 (Minn. 2015) .................................................................. passim

    Firmani v. Firmani,

    752 A.2d 854 (N.J. Super. Ct. App. Div. 2000) ................................................39

    G.M. Houser, Inc. v. Rodgers, 204 S.W.3d 836 (Tex. App.Dallas 2006, no pet.) .........................................19

    Given v. Taylor, Hart & Co., 6 Tex. 315 (1851) ...............................................................................................42

    Hawes v. Cent. Tex. Prod. Credit Assn, 503 S.W.2d 234 (Tex. 1973) .............................................................................11

    Hayes v. Palm Seedlings Partners-A

    (In re Agric. Research & Tech. Grp., Inc.), 916 F.2d 528 (9th Cir. 1990) .............................................................................22

    Henry v. Lehman Commercial Paper, Inc.

    (In re First Alliance Mortgage Co.), 471 F.3d 977 (9th Cir. 2006) ...................................................................... 14, 15

  • iv

    Higgs v. Amarillo Postal Emps. Credit Union,

    358 S.W.2d 761 (Tex. App.Amarillo 1962, no writ) ....................................28

    Hinsley v. Boudloche (In re Hinsley), 201 F.3d 638 (5th Cir. 2000) ...................................................................... 35, 39

    Image Masters, Inc. v. Chase Home Fin., 489 B.R. 375 (E.D. Pa. 2013) ............................................................................31

    In re Gen. Agents Ins. Co. of Am., Inc., 224 S.W.3d 806 (Tex. App.Houston [14th Dist.] 2007, no pet.) ..................12

    In re Petters Co., Inc., 495 B.R. 887 (Bankr. D. Minn. 2013) ...............................................................24

    In re Yotis, 518 B.R. 481 (Bankr. N.D. Ill. 2014) ................................................................38

    Ingalls v. SMTC Corp. (In re SMTC Mfg. of Texas), 421 B.R. 251 (Bankr. W.D. Tex. 2009) .............................................................18

    Janvey v. Alguire, 647 F.3d 585 (5th Cir. 2011) .............................................................................27

    Janvey v. Brown, 767 F.3d 430 (5th Cir. 2014) .................................................................... 7, 8, 27

    Janvey v. Democratic Senatorial Campaign Comm., Inc., 712 F.3d 185 (5th Cir. 2013) ............................................................................... 8

    Janvey v. The Golf Channel, Inc., 780 F.3d 641 (5th Cir. 2015) ................................................................ 2, 5, 9, 34

    Janvey v. The Golf Channel, Inc.,

    792 F.3d 539 (5th Cir. 2015) ..................................................................... passim

    Kapila v. TD Bank, N.A. (In re Pearlman), 460 B.R. 306 (Bankr. M.D. Fla. 2011) ..............................................................24

    KCM Fin. LLC v. Bradshaw, 457 S.W.3d 70 (Tex. 2015) ...............................................................................10