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Bankruptcy court says it will monitor U.S. Trustee in Countrywide case to insure Fourth Amendment not violated by subpoenas

By John Wesley Hall, Jr.

In the Countrywide Home Loans bankruptcy case, the debtor challenged the trustee's powers to broadly use subpoenas, invoking the Fourth Amendment. The court held that it was be watchful for potential abuse, but none apparently had occurred yet. In re Countrywide Home Loans, 2008 Bankr. LEXIS 1023 n. 18 (W.D. Pa. Bankr. April 1, 2008): The Fourth Amendment protection against unreasonable searches and seizures applies to commercial buildings and corporations as well as to individuals. See Marshall v. Barlow's, Inc., 436 U.S. 307 (1978). Thus, cause and concern for possible abuse if the UST were given completely free rein to proceed under Rule 2004 is justified. Courts have recognized in similar contexts, that the mere possibility of abuse cannot be used to thwart legitimate government inquiry...continue to full post

Full post as published by Fourth Amendment on April 16, 2008 (boomark / email).