Quimbee logo
DMCA.com Protection Status

In re Kaiser Steel

952 F.2d 1230 (1991)

Case BriefRelatedOptions
From our private database of 35,600+ case briefs...

In re Kaiser Steel

United States Court of Appeals for the Tenth Circuit

952 F.2d 1230 (1991)

Facts

In 1984 Kaiser Steel Corporation (Kaiser) (plaintiff) was acquired by outside investors through a leveraged buyout. As part of the leveraged buyout, Kaiser purchased shares of its stock from several securities brokers that held shares of Kaiser for the brokers’ customers. The customers were beneficial shareholders of Kaiser stock, meaning that they had ownership interest in the stock even though the stock was held in the name of the brokers. When Kaiser purchased its stock from the securities brokers, it paid the brokers directly, and the brokers paid the beneficial shareholders. In 1987 Kaiser filed for bankruptcy and sought to avoid the leveraged buyout, arguing that it and the related payments were fraudulent conveyances. Kaiser attempted to avoid and recover the payments that were made to the beneficial shareholders in connection with the leveraged buyout. A group of beneficial shareholders (the defendant shareholders) (defendants) filed a motion for summary judgment, arguing that the payments were settlement payments that were exempt from avoidance under 11 U.S.C. § 546(e). Section 546(e) provided that settlement payments made to or by a securities broker in connection with a securities trade were exempt from avoidance. Kaiser opposed the motion, arguing that the payments to the defendant shareholders were not settlement payments under § 546(e), because the payments were not made to the brokers in direct connection with a securities trade. The district court granted the motion for summary judgment, holding that the payments were exempt under § 546(e). Kaiser appealed.

Rule of Law

Issue

Holding and Reasoning (Anderson, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 618,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 618,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 35,600 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 618,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 35,600 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership