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: JURIST - The Paper Chase

Supreme Court hears bankruptcy court jurisdiction case

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

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[JURIST] The US Supreme Court heard oral arguments Monday in Travelers Indemnity v. Bailey, where the Court will consider whether a bankruptcy court has jurisdiction to approve a third-party injunction provision in a plan of reorganization or related confirmation order. The cases arise from the bankruptcy of asbestos manufacturer Johns-Manville Corp.. The US Court of Appeals for the Second Circuit in 2004 held that a bankruptcy court lacked that jurisdiction. Petitioners in the case argue that the court did have the authority under federal law, and that the Second Circuit itself had upheld that authority in an earlier 1986 ruling.

Full post as published by JURIST - The Paper Chase on March 30, 2009 (boomark / email).

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