Non-Pecuniary Interests and the Injudicious Limits of Appellate Standing in Bankruptcy

Abstract

Standing to appeal bankruptcy court orders today is limited to those with a pecuniary interest. This prudential limitation is based on the person aggrieved requirement of Section 39(c) of the Bankruptcy Act of 1898 - a requirement that was not included in the Bankruptcy Code. This article examines the extensive differences between the Act and the Code, the potential justifications for extending the pecuniary interest test in spite of the omission of the person aggrieved requirement, and the potential ramifications for parties and the integrity of the bankruptcy process. This analysis suggests that standing to appeal bankruptcy orders should be governed by the party in interest standard used to evaluate standing to appear in bankruptcy court.

Keywords: bankruptcy, standing, person aggrieved, pecuniary interest, appeals, party in interest, separation of powers, asbestos