Examining Equitable Mootness After High Court Ch. 11 Denial

The U.S. Supreme Court recently denied a cert petition where the petitioner wanted the controversial doctrine of equitable mootness ruled unconstitutional, in KK-PB Financial LLC v. 160 Royal Palm LLC.

The court's June refusal to take the case means the doctrine remains valid and, in certain situations, appellate courts will continue to refuse to hear appeals of bankruptcy court orders. The primary beneficiaries of the ruling will be Chapter 11 debtors.

When the doctrine is applied, confirmation orders approving their plans of reorganization or liquidation will stand without appellate review. And, no doubt, the continued use of the doctrine will cause some judges, scholars and practitioners to keep finding flaws with it.

To continue reading Daniel Lowenthal's Law360 article on this topic, please click here.