In re: ONE2ONE Communications — bankruptcy — reversal — Greenaway
A company filed for Chapter 11 bankruptcy reorganization. Over one creditor’s objections, the bankruptcy court confirmed the reorganization plan. The creditor appealed to the district court, which ruled that its appeal was equitably moot. The creditor then appealed to the Third Circuit, urging the court to overrule its prior adoption of the equitable mootness doctrine.
Today, the Third Circuit reversed. The panel could not overrule prior circuit precedent, but the court held that the district court’s application of the doctrine was an abuse of discretion.
Joining Greenaway were McKee and Krause. Krause filed a long and thoughtful concurrence urging the en banc court to abolish or at least reform the “legally ungrounded and practically unadministerable” equitable mootness doctrine. Arguing counsel were Courtney Schael for the creditor and Michael Sirota for the debtor.