The Fifth Circuit referred a dispute between a bankrupt Texas man and his bankruptcy trustee to the state’s supreme court, saying it concerns statutory state law interpretation.
The exemption for a 70% ownership interest in DAD Drilling LLC that William Canada seeks in his personal bankruptcy relies on whether a Texas law provision exempts LLC membership interests, according to the Wednesday ruling in the US Court of Appeals for the Fifth Circuit.
The question is “reasonably close and contested,” and “implicates the interplay between state and federal law,” Judge James C. Ho said.
“And we can expect the issue to ...