Supreme Court Reshapes Future of Bankruptcy Practices with Landmark Ruling on Non-Debtor Releases
Washington, D.C. – In a landmark decision, the Supreme Court has established a significant precedent regarding the scope of bankruptcy protections, particularly impacting the release of non-debtors without the explicit consent of claimants. The ruling could reshape many aspects of Chapter 11 bankruptcy proceedings and has broad implications for future cases involving mass tort litigation. The majority, a five-justice panel, contended against the minority of four justices, focusing on whether it is proper to grant releases to non-debtors who haven’t sought creditor approval. Historically, bankruptcy discharge—that is, the release from obligation to pay—has been reserved … Read more