Two Appellate Courts Weigh “Uptier” Transactions Under New York Law

On December 31, 2024, the United States Court of Appeals for the Fifth Circuit and the New York Appellate Division, First Department, both issued decisions evaluating the validity of so-called “uptier” transactions under New York law. In re Serta Simmons Bedding, LLC, Excluded Lenders, No. 23-20181 (5th Cir. Dec. 31, 2024) (“Serta”); Ocean Trails CLO VII, et al. v. MLN TopCo Ltd., et al., No. 2024-00169 (N.Y. App. Div. 1st Dep’t Dec. 31, 2024) (“Mitel”). These […]

By | February 11th, 2025 ||

Appellate Showdown Over FCA Qui Tam Provision’s Constitutionality Reaches Eleventh Circuit

As we anticipated in our October 17, 2024, blog, both the Government and the Relator have appealed the district court’s decision in U.S. ex rel. Zafirov v. Florida Medical Associates, LLC, et al. (Zafirov), the first case to hold that the qui tam provision of the federal False Claims Act violates the Appointments Clause of the U.S. Constitution. Briefly, on September 30, 2024, the United States District Court for the Middle District of Florida reasoned that qui tam relators, as whistleblowers, […]

By | February 8th, 2025 ||

5 Trends To Watch: 2025 Texas Appellate

Texas State Constitution’s Takings Clause Application Limits — The limits of Texas’ Takings Clause, which holds that a person’s property cannot be taken or damaged by the government for a public purpose without just compensation, are being tested in several novel cases. Usually applied in eminent domain cases, the clause’s application in these matters will likely affect whether that narrow usage may be broadened.
Sovereign Immunity Uncertain for Quasi-Governmental Entities — Courts continue to debate […]

By | February 6th, 2025 ||