Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Bankruptcy Court Preliminary Injunction Held Not Appealable

By Michael L. Cook
March 01, 2020

A bankruptcy court's preliminary injunction was "not a final and immediately appealable order," held the U.S. District Court for the District of Delaware on Dec. 10, 2019. In re Alcor Energy, LLC, 2019 WL 6716420, 4 (D. Del. Dec. 10, 2019). The court declined to "exercise [its] discretion" under 28 U.S.C. §158(a)(3) to hear the interlocutory appeal. Id., citing 16 Wright & Miller, Federal Practice and Procedure, §3926.1 (3d ed. 2017) ("There is no provision for appeal as of right from an injunction order of a bankruptcy judge to the district court.").

A bankruptcy court's injunction is appealable, however, according to the decisions that the Alcor court never mentioned. See, e.g.In re GI Holdings, Inc., 122 Fed. Appx. 554-55 n.2 (3d Cir. 2004) ("Jurisdiction lies for this appeal pursuant to 28 U.S.C. §1292(a)(1) because the [district court] refused … to modify or dissolve a [bankruptcy court] preliminary injunction."); Reliance Acceptance Corp. v. Levin (In re Reliance Acceptance Group), 235 B.R. 548, 553 (D. Del. 1999) ("the court looks to sections 158(c)(2) and 1292(a) to find the defendants have a right to appeal to this court [from] the Bankruptcy Court's preliminary injunction order."). The Alcor court also missed the latest update to the Wright & Miller treatise that cites In re World Imports Ltd., 820 F.3d 576, 582 n.5 (3d Cir. 2016) with the following: "Injunctions as final. An injunction from the district court can be treated as final from the district court as well as on appeal to the district court." In the recent Third Circuit case, reported Wright & Miller, "the bankruptcy court issued an injunction …. The district court affirmed. The [Third Circuit] noted that the district court had jurisdiction of the appeal from the bankruptcy court both under [28 U.S.C. §]158(a) and under §1292(a) …" 16 Wright & Miller, supra, §3926.1, n.28 (2018 Supp.). Unfortunately, the appellants in Alcor "provided no argument in support of" the district court's appellate jurisdiction and thus "waived any argument that the appeal" was appropriate. Alcor, 2019 WL 6716420 at 4.

Relevant Statutes

Appeals from the bankruptcy court to the district court are governed by three provisions of the Judiciary Code. §§158(a); 158(c)(2); and §1292(a)(1). 28 U.S.C. Section 158(a) reads in relevant part as follows:

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers Image

In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

CoStar Wins Injunction for Breach-of-Contract Damages In CRE Database Access Lawsuit Image

Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.

Fresh Filings Image

Notable recent court filings in entertainment law.