Commercial Litigation and Arbitration

Matter of First Impression vs. Baseless Position (Good Quote)

Reorganized Debtors. SC SJ Holdings, LLC v. Pillsbury Winthrop Shaw Pittman LLP ( In re SC SJ Holdings, LLC), 2023 U.S. Dist. LEXIS 48320 (Bankr. D. Del. March 22, 2023)

Debtors argue that § 1144 "is not applicable to" requests for relief where purported ethical violations give rise to late discovery of the basis for a request. (D.I. 21 at 26-29). This Court need not reach any factual issues in order to affirm the Bankruptcy Court's decision. The statute contains no exception for purported ethical violations, and the Bankruptcy Court did not err in declining to create [*29]  one out of whole cloth. (See 5/4/2022 Tr. at 80-81). Debtors insist this is a "matter of first impression." (D.I. 21 at 26). More accurately stated, there no authority for Debtors' argument that this Court should create an exception in derogation of the statute's plain text.

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