Narrative Opinion Summary
The case involves the Trustee for the liquidation of Lehman Brothers Inc. (LBI) under the Securities Investor Protection Act (SIPA) and the claim filed by Fifth Third Structured Large Cap Plus Fund regarding the appropriate date for valuing its short positions. The Trustee argued that the valuation should be based on the SIPA filing date, September 19, 2008, while Fifth Third contended for March 11, 2009, citing its status as a financial participant under the Bankruptcy Code. The court determined that the assets in Fifth Third's Special Custody Account were 'customer property' under SIPA, and reaffirmed the filing date as the valuation date for claims. Fifth Third's reliance on Bankruptcy Code provisions was rejected due to the primacy of SIPA and contractual limitations. Additionally, Fifth Third's Motion for Summary Judgment was struck as procedurally improper. The court upheld the Trustee's determination, directing that Fifth Third's claim be resolved based on the SIPA filing date, and ruled against considering new facts not included in the agreed Stipulation of Facts. Consequently, Fifth Third's objection was overruled, and the Trustee's motion was granted.
Legal Issues Addressed
Bankruptcy Code and Safe Harbor Provisionssubscribe to see similar legal issues
Application: Fifth Third's argument for using alternative valuation dates based on Bankruptcy Code provisions was ineffective due to contractual limitations and the primacy of SIPA's provisions.
Reasoning: The Court must defer to SIPA's provisions, emphasizing that any Bankruptcy Code language inconsistent with SIPA is inapplicable.
Classification of 'Customer Property' Under SIPAsubscribe to see similar legal issues
Application: The assets in the Special Custody Account, held in connection with prime brokerage services, are deemed 'customer property' under SIPA, affecting the claims process.
Reasoning: Assets held by a custodian in this interconnected relationship qualify as 'customer property' under SIPA, which includes cash and securities held for a debtor's accounts.
Procedural Impropriety in Motion for Summary Judgmentsubscribe to see similar legal issues
Application: Fifth Third's Motion for Summary Judgment was struck from the record due to procedural violations.
Reasoning: Fifth Third's January 6, 2010 Motion for Summary Judgment is deemed procedurally improper and is struck from the record due to violations of established protocols.
Stipulation of Facts in Judicial Proceedingssubscribe to see similar legal issues
Application: The court relied solely on the Stipulation of Facts agreed upon by the parties, dismissing any new facts introduced outside this context.
Reasoning: All factual reliance in this decision is based on the Stipulation of Facts.
Valuation Date Under SIPAsubscribe to see similar legal issues
Application: The court determined that the valuation date for claims related to Fifth Third's short positions must be the filing date of the LBI liquidation, September 19, 2008, as mandated by SIPA.
Reasoning: The Court affirms that the liquidation date of Lehman Brothers Inc. (LBI), September 19, 2008, is the definitive date for determining claims related to Fifth Third's short positions, consistent with the Securities Investor Protection Act (SIPA).