DOJ Bankruptcy Watchdog Fee Hike Improper, Supreme Court Rules (2)

Congress’ 2017 increase in Justice Department fees paid by bankrupt companies violated a uniformity requirement in the Constitution’s Bankruptcy Clause because it didn’t apply in two states, the US Supreme Court said.

The hike in debtors’ quarterly fees payable to the US Trustee’s Office, the Justice Department’s bankruptcy watchdog, was impermissible and must be rectified, the high court said in a unanimous decision Monday. The case arises out of an appeal from the Chapter 11 case for electronics retailer Circuit City.

Congress raised the fees starting in 2018 from a maximum of $30,000 to a maximum of $250,000—depending on how ...