U.S. Supreme Court Rules on Section 363(m) of Bankruptcy Code, Potentially Reveals View on Equitable Mootness
Highlights
The Supreme Court held Section 363(m) is only a “statutory limitation” to accessing appellate relief in disputed bankruptcy sales that requires parties to take certain procedural steps to be effective
The Supreme Court also addressed mootness arguments and held that as long as parties have a concrete interest, however small, in the outcome of an appeal, the appeal should remain alive
The ruling provides insight as to how the Supreme Court may tackle the controversial doctrine of “equitable mootness”
In MOAC Mall Holdings LLC v. Transform Holdco LLC, 598 U.S. (2023), Justice Ketanji Brown Jackson’s first Supreme Court opinion, the U.S. Supreme Court unanimously held that Section 363(m) of the Bankruptcy Code is not jurisdictional and, therefore, can be waived. In doing so, the justices potentially provided some insight into their views on a related bankruptcy and appellate topic – the doctrine of equitable mootness.
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