“Clear and Indisputable Error”?

The receiver for the affairs of Allen Stanford assigned some fraudulent transfer claims to a committee of creditors.  The defendants moved to dismiss, arguing that while a federal court may hear the claims of a federally-appointed receiver, it may not hear those brought by his assignee.  The panel majority, noting that “[n]either side of this dispute has cited any controlling cases” on the point, found that the district court did not “clearly and indisputably err[], if it erred at all,” because the point did not have a clear resolution.  A dissent would have heard the case, observing: “It is unfortunate that the [defendants] should be forced to litigate this case to conclusion, if they can afford it, before resolving this difficult and novel jurisdictional issue.”  In re American Lebanese Syrian Associated Charities, No. 15-11188 (March 3, 2016).  This exchange echoes several others in recent years about mandamus and the balance of power between the trial and appellate levels of the court system. (Thanks to 600Camp friend Jeff Levinger for flagging this one.)

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