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Second Circuit Extends Equitable Mootness Doctrine to Chapter 11 Liquidations
24 November 2014
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A recent decision by the Court of Appeals for the Second Circuit extends the equitable mootness doctrine, which permits appellate courts to refrain from hearing bankruptcy appeals relating to plan confirmation when it would be “inequitable” to do so, to the Chapter 11 liquidation context.
This ruling serves as a useful reminder that an appeal from a confirmation order is presumed equitably moot once the debtor’s plan has been substantially consummated and that following plan confirmation, affected parties seeking relief should pursue any potential remedy with diligence and speed.
Richard F. Hahn
M. Natasha Labovitz
George E.B. Maguire
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