The Supreme Court declined to take up a case this month concerning the doctrine of equitable mootness, a topic that continues to rile bankruptcy courts and generate controversy amongst practitioners and scholars. The Eighth Circuit Court of Appeals recently described the doctrine as one that is “misleadingly” labeled, but which allows courts to dismiss an appeal from a bankruptcy court’s ruling because the appeal has been rendered moot due to “equitable, prudential, or pragmatic considerations.” In most situations, the appeal is “equitably” moot because the bankruptcy court’s order has already been implemented by the debtor by the time the appeal is heard. Meanwhile, in bankruptcy cases big and small, appeals primarily from confirmation plans are focused on the issue. With Courts of Appeals divided on the issue, it will continue to generate objections, expedited appeals, and uncertainty going forward.
Continue Reading Equitable Mootness Doctrine Will Continue to Generate Controversy After Supreme Court Declines to Hear Appeal on the Issue
Kyle Kolb
Kyle Kolb is counsel in Herrick's litigation department and a member of the Restructuring & Finance Litigation Group.
Kyle has significant experience in complex commercial, corporate finance, and securities litigation matters in both federal and state courts. Kyle’s practice frequently involves breach of fiduciary duty litigations, shareholder actions, disputes among LLC members, investor disputes, governmental and internal investigations, commercial contract disputes, and other areas of business litigation. His clients include public and private held companies, debtors, creditor committees, and hedge funds. Kyle is also skilled in managing large matters involving complex eDiscovery issues.
Kyle has also done substantial pro bono work, including representing a client seeking asylum and successfully representing a coalition of minority voters through trial in a suit under Section 2 of the Voting Rights Act.
Prior to joining Herrick, Kyle was with Olshan Frome Wolosky LLP and Gibson, Dunn & Crutcher LLP. While in law school, Kyle served as a judicial intern for the Honorable James C. Francis IV in the U.S. District Court for the Southern District of New York.
Contact: Read more about Kyle Kolb
Seadrill Bankruptcy Court Sanctions BP For Willful Violation of Automatic Stay in Arbitration Proceeding
By Kyle Kolb on
Posted in Bankruptcy, Creditors
On January 28, Judge David Jones of the Bankruptcy Court for the Southern District of Texas sanctioned BP after finding that its conduct in an arbitration proceeding involving the Seadrill debtors amounted to a “willful, knowing, and intentional” violation of the Bankruptcy Code’s automatic stay provisions. Judge Jones also sanctioned BP by awarding Seadrill their attorneys’ fees and costs in bringing the motion.
Seadrill brought an emergency motion to enforce the automatic stay pursuant to Section 362 of the Bankruptcy Code in connection with a post-petition order issued by an arbitration tribunal that required Seadrill to post a $1.7 million bond should it lose the arbitration. If Seadrill did not post the bond, the arbitration would not continue.
Continue Reading Seadrill Bankruptcy Court Sanctions BP For Willful Violation of Automatic Stay in Arbitration Proceeding