October Term 2007 · Docket 07-312
Does the bankruptcy stamp tax exemption cover pre-confirmation transfers?
Florida and Piccadilly Cafeterias dispute whether the tax exemption applies to transfers made before a bankruptcy plan confirms.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Makar argued the exemption applies to post-confirmation transfers.
Mr. Brunstad argued cash scarcity makes pre-confirmation transfers critical.
justice_breyer_questioned_the_impact_of_unconfirmed_plans_on_tax_liability.
justice_breyer_probed_the_relevance_of_transfer_timing_relative_to_confirmation.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 17-21 — Transcript, file page 4, lines 17-21
- Official Supreme Court Transcript — file page 4, lines 33-45 — Transcript, file page 4, lines 33-45
- Official Supreme Court Transcript — file page 4, lines 51-11 — Transcript, file page 4, lines 51-11
- Official Supreme Court Transcript — file page 5, lines 25-3 — Transcript, file page 5, lines 25-3
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
- Official Supreme Court Transcript — file page 6, lines 7-3 — Transcript, file page 6, lines 7-3
- Official Supreme Court Transcript — file page 7, lines 13-29 — Transcript, file page 7, lines 13-29
- Official Supreme Court Transcript — file page 7, lines 33-35 — Transcript, file page 7, lines 33-35
- Official Supreme Court Transcript — file page 7, lines 39-41 — Transcript, file page 7, lines 39-41
- Official Supreme Court Transcript — file page 7, lines 43-45 — Transcript, file page 7, lines 43-45
- Official Supreme Court Transcript — file page 8, lines 13-23 — Transcript, file page 8, lines 13-23
- Official Supreme Court Transcript — file page 8, lines 29-33 — Transcript, file page 8, lines 29-33
- Official Supreme Court Transcript — file page 8, lines 39-43 — Transcript, file page 8, lines 39-43
A citizen's guide to the whole case
What this case is about
The case tests the scope of a federal tax exemption in bankruptcy. The dispute centers on the timing of asset transfers relative to plan confirmation.
Official sources for this section
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
How the case got here
The Supreme Court heard oral argument in this case on March 26, 2008.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
What each side wants
Florida wants the tax exemption to apply only to transfers after plan confirmation.
Piccadilly wants the tax exemption to cover transfers made before plan confirmation.
Official sources for this section
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
What each side says
Florida argues the statute naturally exempts only post-confirmation transfers.
Piccadilly argues the exemption covers transfers occurring before confirmation.
Official sources for this section
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
What the justices asked
Justice Breyer asked if the tax remains valid if a plan never confirms.
Justice Breyer asked whether the transfer timing relative to confirmation matters.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 17-21 — Transcript, file page 4, lines 17-21
- Official Supreme Court Transcript — file page 4, lines 33-45 — Transcript, file page 4, lines 33-45
- Official Supreme Court Transcript — file page 4, lines 51-11 — Transcript, file page 4, lines 51-11
- Official Supreme Court Transcript — file page 5, lines 25-3 — Transcript, file page 5, lines 25-3
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
- Official Supreme Court Transcript — file page 6, lines 7-3 — Transcript, file page 6, lines 7-3
- Official Supreme Court Transcript — file page 7, lines 13-29 — Transcript, file page 7, lines 13-29
- Official Supreme Court Transcript — file page 7, lines 33-35 — Transcript, file page 7, lines 33-35
- Official Supreme Court Transcript — file page 7, lines 39-41 — Transcript, file page 7, lines 39-41
- Official Supreme Court Transcript — file page 7, lines 43-45 — Transcript, file page 7, lines 43-45
- Official Supreme Court Transcript — file page 8, lines 13-23 — Transcript, file page 8, lines 13-23
- Official Supreme Court Transcript — file page 8, lines 29-33 — Transcript, file page 8, lines 29-33
- Official Supreme Court Transcript — file page 8, lines 39-43 — Transcript, file page 8, lines 39-43
Why it matters
The outcome defines the tax burden for businesses restructuring under bankruptcy law. It clarifies when asset transfers trigger stamp taxes. This affects the financial viability of many Chapter 11 cases.
Official sources for this section
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 17-21 — Transcript, file page 4, lines 17-21
- Official Supreme Court Transcript — file page 4, lines 33-45 — Transcript, file page 4, lines 33-45
- Official Supreme Court Transcript — file page 4, lines 51-11 — Transcript, file page 4, lines 51-11
- Official Supreme Court Transcript — file page 5, lines 25-3 — Transcript, file page 5, lines 25-3
- Official Supreme Court Transcript — file page 58, lines 47-49 — Transcript, file page 58, lines 47-49
- Official Supreme Court Transcript — file page 6, lines 7-3 — Transcript, file page 6, lines 7-3
- Official Supreme Court Transcript — file page 7, lines 13-29 — Transcript, file page 7, lines 13-29
- Official Supreme Court Transcript — file page 7, lines 33-35 — Transcript, file page 7, lines 33-35
- Official Supreme Court Transcript — file page 7, lines 39-41 — Transcript, file page 7, lines 39-41
- Official Supreme Court Transcript — file page 7, lines 43-45 — Transcript, file page 7, lines 43-45
- Official Supreme Court Transcript — file page 8, lines 13-23 — Transcript, file page 8, lines 13-23
- Official Supreme Court Transcript — file page 8, lines 29-33 — Transcript, file page 8, lines 29-33
- Official Supreme Court Transcript — file page 8, lines 39-43 — Transcript, file page 8, lines 39-43
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
- Official Supreme Court Transcript — file page 27, lines 3-7 — Transcript, file page 27, lines 3-7
- Official Supreme Court Transcript — file page 3, lines 19-15 — Transcript, file page 3, lines 19-15
- Official Supreme Court Transcript — file page 57, lines 41-45 — Transcript, file page 57, lines 41-45
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.