BFP v. Resolution Trust Corporation

Justice Souter, with whom Justice Blackmun, Justice Stevens, and Justice Ginsburg join,

dissenting.

The Court today holds that by the terms of the Bankruptcy Code Congress intended a peppercorn paid at a non-collusive and procedurally regular foreclosure sale to be treated as the “reasonable] equivalent” of the value of a California beachfront estate. Because the Court’s reasoning fails both to overcome the implausibility of that proposition and to justify engrafting a foreclosure-sale exception onto 11 U. S. C. § 548(a)(2)(A), in derogation of the straightforward language used by Congress, I…