Practice and Procedure

FishDish Proves that Ending Equitable Mootness Didn’t End the World as We Know It

Curtailing equitable mootness will benefit the bankruptcy community by fostering appellate decisions that clarify the standards for confirmation of chapter 11 plans.

Court :

8th Circuit

Iowa

Iowa Northern District

Target of Lawsuit Doesn’t Have Standing to Appeal a Litigation Funding Agreement

The Eleventh Circuit explained how prudential (or ‘person aggrieved’) standing is a higher standard more difficult to meet than constitutional (or ‘Article III’) standing.

Court :

11th Circuit

Sound and Fury: Will Sen. Warren’s Proposed Legislation Forever Impact Private Equity and the Restructuring Process?

Senator Elizabeth Warren (among others) recently re-introduced a bill to “fundamentally reform” the private-equity system “by closing the legal, tax, and regulatory loopholes that allow private equity firms to capture all the rewards of their investments while insulating themselves from risk.” [1] If enacted, the legislation will greatly impact several critical features of the Bankruptcy Code, disrupt the restructuring process more broadly, and likely inspire costly litigation (and compliance measures).

Nonconsensual Third-Party Releases and Legislative Efforts to Limit Them

Nonconsensual third-party releases in bankruptcy are the hot topic of debate recently. Even though there is no provision of the Bankruptcy Code that expressly authorizes these releases, no Code provision prohibits them, either. Therefore (drumroll), different circuits have different views on third-party releases, and because Congress is not always hot and heavy on the Bankruptcy Code, these splits tend to slowly get worked out in the appellate court process.

Texaco’s Plan in 1988 Wasn’t Grounds for Removal to Federal Court, Fourth Circuit Says

In a case that may be headed to the U.S. Supreme Court at least once more, the Fourth Circuit is subjecting 26 multinational oil companies to the tender mercies of the Maryland state courts.

Court :

4th Circuit

Constructive Notice Won’t Save a Sale Under 363(m) Absent Actual Notice, Seventh Circuit Says

To be a good faith purchaser under Section 363(m), a purchaser must be given actual notice to those with an interest in the property. Constructive notice won’t suffice.

Court :

7th Circuit