The Harmonizing Directive of Section 1508: Foreign Case Law’s Role in Interpreting Chapter 15 of the U.S. Bankruptcy Code
The number of insolvency cases with cross-border aspects continues to rise. In many of these cases, a country’s adoption of the UNCITRAL Model Law on Cross-Border Insolvency governs. The United States adopted the Model Law into federal statute through Chapter 15 of the U.S. Bankruptcy Code. Section 1508 of the Bankruptcy Code requires U.S. courts to consider the international origin of the Model Law and the need to promote its uniform application in Chapter 15’s interpretation. The legislative history of Chapter 15’s adoption reveals that non-U.S. sources, including non-U.S. court decisions, facilitate this uniform application. Courts have recognized Section 1508’s directive, but a method of interpretation that fully satisfies the directive, particularly with respect to the consideration of foreign case law, has yet to be articulated clearly. This Note addresses that issue and proposes the level of consideration U.S. courts should give the case law of other Model Law countries when interpreting Chapter 15 of the Bankruptcy Code.
The Harmonizing Directive of Section 1508: Foreign Case Law’s Role in Interpreting Chapter 15 of the U.S. Bankruptcy Code,
Nw. J. Int'l L. & Bus.