A three-judge panel of the U.S. Court of Appeals for the Second Circuit on Monday reversed a ruling from the U.S. Bankruptcy Court for the District of Connecticut, finding that a 2017 change to bankruptcy fee arrangements violated the uniformity requirement of the Bankruptcy Clause of the U.S. Constitution.

Judge William Nardini wrote the 33-page decision for the panel, which also included judges Reena Raggi and Richard Sullivan. They found that “the 2017 Amendment was unconstitutionally nonuniform on its face” because it led to a disparity between fees in districts where the U.S. Trustee Program oversees bankruptcy administration and districts where judicially-appointed bankruptcy administrators perform the same function.

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