Mark Felger, co-chair of Cozen O’Connor’s Bankruptcy, Insolvency & Restructuring Practice Group, and Barry Klayman, a member of the Bankruptcy, Insolvency & Restructuring Practice Group, discuss a recent bankruptcy decision that limits jurisdiction over post-confirmation, noncore claims by the trustee of a liquidating trust. In Gavin Solmonese v. Shyamsundar, U.S. Bankruptcy Judge Mary F. Walrath of the District of Delaware found that she lacked jurisdiction over claims for breach of fiduciary duty brought by a liquidating trustee against former managers and officers of Chapter 11 debtors. The court focused on the fact that the specific claims were not expressly mentioned in the retention of jurisdiction provision in the confirmation plan. The opinion contains a concise and straightforward explanation of the limits of the court’s post-confirmation jurisdiction over noncore matters.
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