Follow Us

Law.com Subscribers SAVE 30%

Call 855-808-4530 or email GroupSales@alm.com to receive your discount on a new subscription.

Bankruptcy

Validity of an Avoidance Claim Sale

Third Circuit Sidesteps Ruling

The Third Circuit recently dismissed an appeal from "the sale of legal claims" as "statutorily moot" under Bankruptcy Code § 363(m) because the appellants "had not obtained a stay" of the effectiveness of the sale order pending appeal. Here's why this ruling is so important.

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The U.S. Court of Appeals for the Third Circuit recently dismissed an appeal from “the sale of legal claims” as “statutorily moot” under Bankruptcy Code (“Code”) § 363(m) because the appellants “had not obtained a stay” of the effectiveness of the sale order pending appeal. In re Pursuit Capital Mgmt., LLC, 2017 U.S. App. Lexis 20889 (3d Cir. Oct. 24, 2017). According to the court, “we cannot give [the appellants] the remedy they seek without affecting the validity of the sale.” Id. at *37.

Read These Next