Bad Law!
It occurred to my while sitting in the courtroom in Youngstown the other day listening to CSX's Lewis misrepresent the 4th Circuit Decision, how truly perverse this simple case has become! It is no longer a case wherein the UTU and CSX have used their political and financial clout to void well established labor law but rather could now conceivably change Bankruptcy Statutes to the detriment of disabled workers throughout our land!
One has to wonder if monies that would always be considered exempt from creditor process could possibly be considered non-exempt because of alleged fraudulent transfer. Lewis cleverly made it sound like Smoot transferred money from Ohio to Virginia to hide it from the specious judgment UTU and CSX received via the Summary Bench Trial on Damages, the inference being it was illegal because Smoot lived in Ohio! Not true, Smoot and his family had already moved back to Virginia when he received the FELA settlement from CSX in Ohio. He transferred the money via wire to a corporate account in Virginia where he lived! What was he suppose to do, leave it in Ohio where he no longer lived?
But it was fraud because he transferred it to a corporation for which he didn't receive adequate compensation? NO - the corporation was always his alter-ego, he maintained complete control of the money, and under Virginia State Law, it was always exempt no matter what he did with it!
Smoot's lawyer in Youngstown, having received a copy of the 4th Circuit Decision from Rambo (John Edmonds) and now having had an opportunity to read it and refer it to bankruptcy attornies is livid that this can happen and has told Smoot the Supreme Court has to hear this case because the opinion itself indicates there is disagreement between the Circuits on this issue, i.e., whether exempt funds can ever be made non-exempt no matter what is done with them!
The bad law that may be upheld if the Supreme Court refuses to hear the appeal of the 6th Circuit decision that a District Court doesn't have jurisdiction of a 153(q) case when it clearly does, only hurts all railroad operating employees and obviously, the Economus dicta that you take the case back to the First Division for another bite of the apple will not be allowed (ah . . ., in any other case except perhaps Smoot's - haha - that is how corrupt these boys are)! However, the failure of the Court to clear up the exemption given these circumstances can hurt all those who ever receive a formerly "exempt" disability settlement! This is a very serious matter and it is hoped there will be numerous "amicus briefs" from those organiztions that regularly defend the common man and his rights under the law! See More Bad Law and the 4th Circuit Decision previously posted on this web site!