U.S. Appeals Court Judge Highlights Deepening Circuit Split on Federal Preemption in Bankruptcy Cases

Judge Milan Smith Jr. of the U.S. Court of Appeals for the Ninth Circuit has highlighted a notable circuit split over the issue of federal preemption in bankruptcy cases. In a recent concurrence, Smith addressed the disagreement among different circuit courts on whether claims against attorneys for alleged abuse of the federal bankruptcy process should be adjudicated in state courts or must be heard in federal courts. This emerged during the case involving Nevada attorney Jeffrey Cogan, whose lawsuit challenged a civil judgment entered against him in an Arizona state court. The suit originated from accusations by former physician and debtor Arnaldo Trabucco, who alleged malicious prosecution by Cogan during Trabucco’s Chapter 7 bankruptcy proceedings. Read more.