Equitable Mootness in Bankruptcy Appeals
32 Pages Posted: 18 Jan 2009
Date Written: January, 16 2009
Abstract
This comment examines the doctrine of equitable mootness and the problems caused by its broad application. To this end, the comment necessarily discusses the role and jurisdiction of bankruptcy courts, the bankruptcy process, and the obligations of an Article III court. It also includes an in depth examination of In re Continental Airlines - a case in which application of the equitable mootness doctrine led to an unjust result. Equitable mootness occurs when a bankruptcy court orders implementation of a reorganization plan pending appeal. Implementation of a reorganization plan allows other parties to the litigation to build up reliance interests, which in turn causes the district court to declare the pending appeal equitably moot and decline to hear it. In effect, the doctrine places the determination of whether an appeal will be heard by an Article III court within the discretion of a bankruptcy court, an Article I court. This paper explains how the doctrine both denies a litigant the right to have the merits of his case heard by an Article III court, and also allows district courts to shirk their responsibilities.
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