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2 days ago · As previously discussed and anticipated in prior blog posts, the United States Supreme Court’s decision in Siegel v. Fitzgerald, 596 U.S. 464, 142 S.Ct. 1770, 213 L.Ed.2d 39 (2022),...
1 day ago · In a 5/4 decision, the Supreme Court reversed the Second Circuit’s Purdue decision and declined an invitation to anoint chapter 11 as the remedy for deficiencies in the state and federal tort systems. In his 20-page majority opinion June 27, Justice Neil M. Gorsuch defined the question before the Court as “whether a court in bankruptcy may ...
3 days ago · The U.S. Trustee estimated that if the Supreme Court were to conclude that the decision should be applied retroactively, it would have to pay more than $326 million in refunds to debtors in approximately 2,100 cases, which would further be complicated due to the fact numerous bankruptcy cases have closed and debtors have been liquidated so ...
1 day ago · The Second Circuit then reversed the district court decision, and the U.S. Trustee’s Office appealed to the Supreme Court. The arguments focused on section 1123(b)(6) of the Bankruptcy Code, which allows a plan to include any “appropriate provision not inconsistent” with the rest of the Bankruptcy Code.
1 day ago · On May 30, 2023, a divided panel of the Second Circuit reversed the District Court and held that Bankruptcy Code §§ 105(a) and 1123(b)(6) authorized the Bankruptcy Court’s approval of the non-consensual non-debtor third-party releases. 5. The Supreme Court’s Ruling. In the Opinion, the Court reversed the Second Circuit and remanded the case.
1 day ago · Third, the Bankruptcy Code provides for nonconsensual third-party releases, but only in the context of asbestos cases, see 11 U.S.C. § 524(g), thus making it difficult to justify reading section 1123(b)(6) to provide for nonconsensual third-party releases in every context. According to the majority, a policy change allowing for nonconsensual third-party releases is a matter for Congress and ...
2 days ago · On June 27, 2024, in one of the most significant appellate decisions regarding bankruptcy law since the adoption of the United States Bankruptcy Code in 1978, the United States Supreme Court settled a dispute among the federal circuit Courts of Appeals and held that a debtor in a reorganization case under chapter 11 of the Bankruptcy Code and its non-debtor joint tortfeasors may not effectuate ...
