No Easy Answers for the Supreme Court: Jevic Pits the Bankruptcy Code Against the Law of Unintended Consequences

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, Tennessee)

On December 7, the Supreme Court heard arguments in Czyzewski v. Jevic Holding Co., 787 F.3d 173 (3d Cir. 2016), cert. granted, 136 S. Ct. 2541 (2016). At issue was whether a bankruptcy court may authorize, in a "structured dismissal," the distribution of settlement proceeds in a manner that violates the statutory priority scheme. The Bankruptcy Court for the District of Delaware approved a settlement that resulted in the structured dismissal of a Chapter 11 case. The district court and Court of Appeals for the Third . . .

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