Skip to main content

%1

Supreme Court Holds: § 363(m) Isn’t Jurisdictional; It’s a Limitation on Appellate Relief

Submitted by jhartgen@abi.org on

Reversing the Second Circuit, the Supreme Court handed down a unanimous opinion today in MOAC Mall Holdings LLC, deciding that Section 363(m) is not jurisdictional. It’s a limitation on the remedy available to an appellate court on an appeal from an order approving a sale, according to a special edition of Rochelle's Daily Wire. Section 363(m) says that the reversal or modification “of an authorization under subsection (b) or (c) of this section of a sale or lease of property does not affect the validity of a sale or lease [to a purchaser in good faith] . . . unless such authorization and such sale or lease were stayed pending appeal.” The Second and Fifth Circuits have held that Section 363(m) is jurisdictional. The Third, Sixth, Seventh, Ninth, Tenth and Eleventh Circuits have held that it is not. The opinion for the Court by Justice Ketanji Brown Jackson was her first since her elevation in June 2022.