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No. 18-____ IN THE Supreme Court of the United States UNITED MINE WORKERS OF AMERICA COMBINED BENE- FIT FUND AND UNITED MINE WORKERS OF AMERICA 1992 BENEFIT PLAN, Petitioners, v. ANDRÉ M. TOFFEL, AS CHAPTER 7 TRUSTEE FOR NEW WEI, INC. (F/K/A WALTER ENERGY, INC.), ET AL. Respondents. On Petition for a Writ of Certiorari to the United States Court of Appeals for the Eleventh Circuit PETITION FOR A WRIT OF CERTIORARI BRYAN KILLIAN Counsel of Record STEPHANIE SCHUSTER MORGAN, LEWIS & BOCKIUS LLP 1111 Pennsylvania Ave, N.W. Washington, D.C. 20004 (202) 373–6191 [email protected] i QUESTIONS PRESENTED In the decision below, the Eleventh Circuit held that the tax Anti-Injunction Act (26 U.S.C. § 7421(a)) does not withdraw jurisdiction over a debtor’s effort to use Section 1114(g) of the Bankruptcy Code (11 U.S.C. § 1114(g)) to restrain the assessment of “premiums” for the Combined Fund and for the 1992 Plan, two healthcare benefit plans created under the Coal Indus- try Retiree Health Benefit Act (“Coal Act”) (26 U.S.C. ch. 99). The Eleventh Circuit’s decision warrants fur- ther review. Its holding that a court may restrain the assessment of Combined Fund premiums deepens a circuit split over the scope of an exception to the Anti-Injunction Act created and applied by the Court in South Carolina v. Regan, 465 U.S. 367 (1984). And its holding that 1992 Plan premiums are not “any tax” protected by the Anti-Injunction Act opens a 3–1 split. The questions presented are: 1. Whether the South Carolina v. Regan exception to the Anti-Injunction Act applies only in this Court and, if not, whether it applies only to litigants chal- lenging the validity of a tax. 2. Whether 1992 Plan premiums are “any tax” for purposes of federal statutes like the Anti-Injunction Act. ii PARTIES TO THE PROCEEDING The Petitioners are the United Mine Workers of America Combined Benefit Fund and the United Mine Workers of America 1992 Benefit Plan, which are pri- vate plans established under the Coal Act and main- tained by their boards of trustees. The Respondents are the following entities who were appellees in the proceeding below: • André M. Toffel, the Chapter 7 trustee for the fol- lowing debtors: o New WEI, Inc. (f/k/a Walter Energy, Inc.); o Atlantic Development and Capital, LLC; o Atlantic Leaseco, LLC; o Blue Creek Coal Sales, Inc.; o Blue Creek Energy, Inc.; o New WEI 7, Inc. (f/k/a J.W. Walter, Inc.); o Jefferson Warrior Railroad Company, Inc.; o New WEI 2, LLC (f/k/a Jim Walter Homes, LLC); o New WEI 13, Inc. (f/k/a Jim Walter Resources, Inc.); o Maple Coal Co., LLC; o Sloss-Sheffield Steel & Iron Company; o SP Machine, Inc.; o Taft Coal Sales & Associates, Inc.; o Tuscaloosa Resources, Inc.; o V Manufacturing Company; o New WEI 19, LLC (f/k/a Walter Black Warrior Basin LLC); o New WEI 18, Inc. (f/k/a Walter Coke, Inc.); o New WEI 22, LLC (f/k/a Walter Energy Hold- ings, LLC); o New WEI 20, LLC (f/k/a Walter Exploration & Production LLC); iii o New WEI 1, Inc. (f/k/a Walter Home Improve- ment, Inc.); o New WEI 6 Company (f/k/a Walter Land Com- pany); o New WEI 16, Inc. (f/k/a Walter Minerals, Inc.); and o New WEI 21, LLC (f/k/a Water Natural Gas, LLC). • Warrior Met Coal, Inc., a publicly traded company that was formed by the debtors’ first lien creditors and acquired the debtors’ operations; and • the Steering Committee of First Lien Holders, whose members are o Apollo Global Management LLC; o Ares Management LLC; o Caspian Capital LP; o Fidelity Investments; o Franklin Mutual Advisers LLC; o GSO Capital Partners LP; and o KKR Credit Advisors (US) LLC. iv TABLE OF CONTENTS Page OPINIONS BELOW ............................................... 1 JURISDICTION ..................................................... 1 STATUTORY PROVISIONS INVOLVED ............. 1 STATEMENT .......................................................... 2 I. Statutory Background ..................................... 3 A. Section 1114 of the Bankruptcy Code ............ 4 B. The Coal Act .................................................... 5 II. Case Background ............................................. 7 REASONS FOR GRANTING THE PETITION ... 13 I. This Court’s Review Is Necessary To Settle How Lower Courts Should Apply The South Carolina v. Regan Exception, If At All. ......... 13 II. This Court’s Review Is Necessary To Resolve Whether 1992 Plan Premiums Are “Any Tax” Under The AIA. ............................ 20 III. The Questions Presented In This Case Are Important, And This Case Is An Excellent Vehicle For Answering Them. ....................... 24 CONCLUSION ..................................................... 27 PETITION APPENDIX Eleventh Circuit Opinion (12/27/18) ...... Pet. App. 1 District Court Opinion (5/18/16) .......... Pet. App. 69 Bankruptcy Court Opinion (12/30/15) .. Pet. App. 101 Statutory Addendum .......................... Pet. App. 176 v TABLE OF AUTHORITIES Page(s) CASES Adventure Res. Inc. v. Holland, 137 F.3d 786 (4th Cir. 1998) ................................ 21 Aloe Energy Corp. v. Apfel, 225 F.3d 648 (3d Cir. 2000) .................................. 24 In re Am. Bicycle Ass’n, 895 F.2d 1277 (9th Cir. 1990) .............................. 16 Ambort v. United States, 392 F.2d 1138 (10th Cir. 2004) ............................ 16 Barnhart v. Peabody Coal Co., 537 U.S. 149 (2003) .......................................... 6, 24 Barnhart v. Sigmon Coal Co., 534 U.S. 438 (2002) .......................................... 4, 24 Bob Jones Univ. v. Simon, 416 U.S. 725 (1974) ........................... 13, 14, 17, 20 Bowles v. Russell, 551 U.S. 205 (2007) ........................................ 16, 20 California v. Arizona, 440 U.S. 59 (1979) ................................................ 15 In re Chateaugay Corp., 53 F.3d 478 (2d Cir. 1995) .................................... 21 In re Chateaugay Corp., 64 B.R. 990 (S.D.N.Y. 1986) ................................... 4 vi TABLE OF AUTHORITIES Page(s) Cohen v. United States, 650 F.3d 717 (D.C. Cir 2011) ............................... 19 Commissioner v. Sunnen, 333 U.S. 591 (1948) .............................................. 24 Confederated Tribes & Bands of Yakama Indian Nation v. ATF, 843 F.3d 810 (9th Cir. 2016) ................................ 17 Eastern Enterprises v. Apfel, 524 U.S. 498 (1996) ................................ 3, 4, 23, 24 Eastern Enterprises v. Chater, 110 F.3d 150 (1st Cir. 1997) ................................. 23 Elect. Welfare Tr. Fund v. United States, 907 F.3d 165 (4th Cir. 2018) ................................ 20 Fed. Energy Admin. v. Algonquin SNG, Inc., 426 U.S. 548 (1976) .............................................. 21 Hotze v. Burwell, 784 F.3d 984 (5th Cir. 2015) ................................ 22 Interfirst Bank Dallas, N.A. v. United States, 769 F.2d 299 (5th Cir. 1985) ................................ 16 Judicial Watch v. Rossotti, 317 F.3d 401 (4th Cir. 2003) .......................... 16, 18 In re LaSalle Rolling Mills, Inc., 832 F.2d 390 (7th Cir. 1987) .......................... 17, 18 vii TABLE OF AUTHORITIES Page(s) Laughlin v. IRS, 912 F.2d 197 (8th Cir. 1990) ................................ 17 In re Leckie Smokeless Coal Co., 99 F.3d 573 (4th Cir. 1996) ................ 18, 20, 21, 23 Milner v. Dep’t of Navy, 562 U.S. 562 (2011) .............................................. 15 Nat’l Fed’n of Indep. Bus. v. Sebelius, 567 U.S. 519 (2012) .............................................. 22 Nat’l Tr. for Historic Pres. in the U.S. v. FDIC, 21 F.3d 469 (D.C. Cir 1994) ................................. 16 New Neighborhoods, Inc. v. W.V. Workers’ Comp. Fund, 886 F.2d 714 (4th Cir. 1989) ................................ 22 In re Pac. Lumber Co., 584 F.3d 229 (5th Cir. 2009) ................................ 25 In re Pan Am. Paper Mills, Inc., 618 F.2d 159 (1st Cir. 1980) ................................. 22 Phillips v. Commissioner, 283 U.S. 589 (1931) .............................................. 17 Pittston Co. v. United States, 199 F.3d 694 (4th Cir. 1999) .......................... 21, 23 RYO Mach., LLC v. Dep’t of Treasury, 696 F.3d 467 (6th Cir. 2012) ................................ 17 viii TABLE OF AUTHORITIES Page(s) South Carolina v. Regan, 465 U.S. 367 (1984) .......................................passim In re Sunnyside Coal Co., 146 F.3d 1273 (10th Cir. 1998) ............................ 21 UMWA Combined Benefit Fund v. Walter Energy, Inc., 551 B.R. 631 (N.D. Ala. 2016) .......................... 9, 10 Unity Real Estate Co. v. Hudson, 178 F.3d 649 (3d Cir. 1999) .................................. 21 Whitfield v. United States, 543 U.S. 209 (2005) .............................................. 15 Z Street v. Koskinen, 791 F.3d 24 (D.C. Cir. 2015) ................................ 19 STATUTES 11 U.S.C. § 363(f) ......................................................... 8 11 U.S.C. § 363(m) ..................................................... 26 11 U.S.C. § 503(b) ...................................................... 25 11 U.S.C. § 503(b)(1)(B) ............................................. 21 11 U.S.C. § 1114 ........................................................... 1 11 U.S.C. § 1114(a) ...................................................... 5 11 U.S.C. § 1114(e)(1) .................................................. 5 ix TABLE OF AUTHORITIES Page(s) 11 U.S.C. § 1114(f)(1)(A) .............................................. 5 11 U.S.C. § 1114(g)(1) .................................................. 5 11 U.S.C. § 1114(g)(2) .................................................