The Equitable Mootness Doctrine

Over time, equitable mootness, a court-created doctrine, had been consistently applied and embraced by appellate courts. The doctrine, as it has been applied, provides that appeals from orders confirming Chapter 11 plans will be considered moot ' and thus not subject to appellate review ' if: 1) a plan has been substantially consummated; and 2) granting appellate relief would unravel the plan or be inequitable to third parties relying on the order confirming the plan. Based on, and consistent with, decisions such as that of the U.S. Court of Appeals for the Second Circuit in In re Chateaugay , 94 F.3d 772, 776 (2d Cir. 1996), and the decision of the U.S. Court of Appeals for the Third Circuit in In re Continental Airlines , 91 F.3d 553, 560 (3d Cir. 1996) ( en banc ), the equitable mootness doctrine has been read broadly to create a presumption that if a plan has been substantially consummated, appeals of the confirmation order are equitably moot.

38 minute read November 01, 2015 at 11:37 AM

By

Gary L. Kaplan Jennifer L. Rodburg And Kalman Ochs