Post-Confirmation
Universal Service Administrative Co. v. Post-Confirmation Committee of Unsecured Creditors of Incomnet Communications Corp.
Opinion
Opinion
Bybee, J.
In this case we are asked to review the decision of the bankruptcy appellate panel (“BAP”), which held that the Universal Service Administrative Company (“USAC”) was a transferee under 11 U.S.C. §§ 547 and 550. We hold that USAC is a transferee under the “dominion” test and affirm the judgment of the BAP.
I. FACTS AND PROCEEDINGS
Congress passed the “1996 Telecommunications Act ... to encourage universal telecommunications service.” City of Springfield v. Ostrander (In re LAN Tamers, Inc.), 329 F.3d 204, 206 (1st Cir. 2003). “Universal service includes ‘advanced telecommunications and information services,’ particularly high-speed internet access, for schools (as well as for libraries and rural health care providers).” Id. (quoting 47 U.S.C. § 254 (b)(6), (h)(1) (2000)). To this end, the Telecommunications Act of 1996 (“Telecommunications Act”) requires telecommunications carriers providing interstate telecommunications services to financially support the cost of providing telecommunications services to schools, libraries, health-care providers, low-income consumers, and subscribers in high-cost areas. See 47 U.S.C. § 254 (b) (2000); see also id. § 254(d) (“Every…