Denial of Plan Confirmation and Finality - Supreme Court's Resolution of Circuit Split May Apply to Chapter 11

The Supreme Court has agreed to hear Bullard v. Hyde Park Savings Bank (In re Bullard), U.S., No. 14-116 (cert. granted 12/12/14). The Court's decision in this case will resolve a circuit split with regard to whether an order denying confirmation of a bankruptcy plan is a final order appealable pursuant to 28 U.S.C. § 158(d)(1). The decision has the potential to impact Chapter 13 and Chapter 11 cases.

The statute covering appeals from a district court's or Bankruptcy Appellate Panel's review of a bankruptcy decision, 28 U.S.C. § 158(d)(1), vests jurisdiction in U.S. Courts of Appeals “from all final decisions, judgments, orders, and decrees” entered under 28 U.S.C. § 158(a) and (b). Case law and the Bankruptcy Code provide exceptions to the requirement of finality, including orders reviewable under the collateral order doctrine, interlocutory orders regarding injunctions under 28 U.S.C. § 1292(a)(1), and orders involving a controlling issue of law as to which an immediate appeal may materially advance the ultimate termination of the litigation under 28 U.S.C. § 1292(b). Otherwise, orders must be "final" to be reviewable.

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