Law.com Subscribers SAVE 30%

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

Update On Bankruptcy Appellate Practice: Part One — Appellate Standing

By Michael L. Cook
December 01, 2021

Appeals from bankruptcy court orders continue to play a key role in bankruptcy practice. The relevant sections of the Judicial Code and the Federal Bankruptcy Rules arguably cover all the relevant issues in a straightforward manner. Recent cases, however, show that neither Congress nor the Rules Committees could ever address the myriad issues raised by imaginative lawyers. The appellate courts continue to wrestle with standing, jurisdiction, mootness, excusable neglect and finality, among other things. The following overview, in a series of installments, shows what the courts have been addressing during just the past three years. This first installment will cover appellate standing.

|

Background: Judicial Code and Federal Rules

The Judicial Code (§§157, 158, 1291 and 1292) governs appellate jurisdiction in bankruptcy cases. The Federal Rules of Bankruptcy Procedure (Part VIII) and the Federal Rules of Appellate Procedure determine how and when to file an appeal. 28 U.S.C. §158(c)(2) provides that "an appeal under [section 158(a)-(b) from the bankruptcy court to a district court or bankruptcy appellate panel ("BAP")] shall be taken in the same manner as appeals in civil proceedings generally taken to the courts of appeals from district courts." The case law, though, is inconsistent and more complex.

Appellate standing under Article III of the U.S. Constitution generally "need not be financial and only need be fairly traceable to the alleged illegal action." In re Congoleum Corp., 426 F.3d 675, 685 (3d Cir. 2005), citing Miller v. Nissan Motor Acceptance Corp., 362 F.3d 209, 221 (3d Cir. 2004) (listing elements of Article III standing). But courts have limited appellate standing in bankruptcy cases, as shown below, "to persons or entities that are aggrieved by an order which diminishes their property, increases their burdens, or detrimentally affects their rights." Congoleum, 426 F.3d at 685, citing Travelers Ins. Co. v. H.K. Porter Co., Inc., 45 F.3d 737, 742 (3d Cir. 1995).

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
How Secure Is the AI System Your Law Firm Is Using? Image

In a profession where confidentiality is paramount, failing to address AI security concerns could have disastrous consequences. It is vital that law firms and those in related industries ask the right questions about AI security to protect their clients and their reputation.

COVID-19 and Lease Negotiations: Early Termination Provisions Image

During the COVID-19 pandemic, some tenants were able to negotiate termination agreements with their landlords. But even though a landlord may agree to terminate a lease to regain control of a defaulting tenant's space without costly and lengthy litigation, typically a defaulting tenant that otherwise has no contractual right to terminate its lease will be in a much weaker bargaining position with respect to the conditions for termination.

Pleading Importation: ITC Decisions Highlight Need for Adequate Evidentiary Support Image

The International Trade Commission is empowered to block the importation into the United States of products that infringe U.S. intellectual property rights, In the past, the ITC generally instituted investigations without questioning the importation allegations in the complaint, however in several recent cases, the ITC declined to institute an investigation as to certain proposed respondents due to inadequate pleading of importation.

The Power of Your Inner Circle: Turning Friends and Social Contacts Into Business Allies Image

Practical strategies to explore doing business with friends and social contacts in a way that respects relationships and maximizes opportunities.

Authentic Communications Today Increase Success for Value-Driven Clients Image

As the relationship between in-house and outside counsel continues to evolve, lawyers must continue to foster a client-first mindset, offer business-focused solutions, and embrace technology that helps deliver work faster and more efficiently.