The Eleventh Circuit and the Current State of the Anti-Modification Provision

This Note examines the Eleventh Circuit’s decision in Lee v. U.S. Bank National Association, where the court held that the “anti-modification” provision applies to mixed-use properties that are used for both commercial and residential purposes. The Eleventh Circuit’s decision in Lee created a federal circuit split, as both the First and Third Circuits held that the anti-modification provision does not apply to mixed-use properties. As detailed in this Note, the Eleventh Circuit came to the incorrect conclusion in this case because it incorrectly interpreted the text of the anti-modification provision. However, the Eleventh Circuit’s incorrect decision is not the biggest problem with the current state of the anti-modification provision. The Eleventh Circuit’s decision merely highlights the existing tension between the text of the anti-modification provision and Congress’s purpose behind adding the anti-modification provision to the Bankruptcy Code. As such, considering the Eleventh Circuit’s decision in this case, Congress should amend the Bankruptcy Code to clarify the current status and applicability of the anti-modification provision.