GRANFINANCIERA, S.A. V. NORDBERG 492 U.S. 33 (1989) CASE BRIEF

GRANFINANCIERA, S.A. V. NORDBERG

492 U.S. 33 (1989)

NATURE OF THE CASE: This was a bankruptcy proceeding. Granfinanciera, S. A.'s, (D) appealed a denial of its request for a jury trial in a suit to recover a fraudulent transfer. The District Court affirmed the Bankruptcy Court's judgment for Mordberg (P) and the Court of Appeals also affirmed, ruling, inter alia, that the Seventh Amendment supplied no right to a jury trial, because fraudulent conveyance actions are equitable in nature, even when a plaintiff seeks only monetary relief; because bankruptcy proceedings themselves are inherently equitable in nature; and because Congress has displaced any right to a jury trial by designating, in 28 U.S.C. 157(b)(2)(H), fraudulent conveyance actions as 'core proceedings' triable by bankruptcy judges sitting without juries.

FACTS: Chase & Sanborn Corporation filed for bankruptcy under Chapter 11 in 1983. Nordberg was the trustee in bankruptcy and all causes of action for fraudulent conveyances vested in him. Nordberg (P) filed a suit against Granfinanciera (D) in that D had received $1.7 million from Chase & Sanborn within one year from the date its bankruptcy petition was filed without receiving consideration or reasonably equivalent value in return. D requested a trial by jury. That was denied by the bankruptcy judge. The judge held that the bankruptcy courts were just like administrative agencies and thus were outside the grasp of the Seventh Amendment. P prevailed at the trial and recovered a judgment for $1.68 million. D appealed. The Court of Appeals affirmed. The Supreme Court granted certiorari.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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