Alerts

Appeal From Reorganization Plan Order Not Moot Despite Lack of Stay Pending Appeal

November 24, 2009

The U.S. Court of Appeals for the Tenth Circuit held on Nov. 3, 2009, that a district court had improperly dismissed, on mootness grounds, an appeal from a bankruptcy court’s order confirming a reorganization plan. According to the Tenth Circuit, the appeal was reviewable because reversal of the plan confirmation order (1) would not unduly affect innocent third parties, and (2) would not undo any complex transactions. Because the appellant had also raised serious allegations of bad faith, the court reversed and remanded the case to the district court “for consideration of the merits of” the appeal. In re Paige, _F.3d _, 2009 WL 3584940, *17 (10th Cir. Nov. 3, 2009).