Limits of Bankruptcy Jurisdiction Over Third Parties: Challenging Related to and Supplemental Jurisdiction

This program is cancelled

A live 90-minute CLE video webinar with interactive Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Tuesday, December 20, 2022 (in 11 days)

1:00pm-2:30pm EST, 10:00am-11:30am PST


This CLE webinar will show counsel how to argue for or against limits on the bankruptcy court's "related to" and "supplemental" jurisdiction over third-party disputes when objecting to plans or other relief involving third parties. The program will discuss constitutional and statutory sources of bankruptcy jurisdiction; the outer limits of bankruptcy jurisdiction over state law claims (with or without debtor involvement); jurisdiction over foreign defendants; jurisdiction over transactions that occur, at least in part, outside of the U.S.; and post confirmation and post-case disputes.

Description

It may surprise some, but almost every reorganization case requires inquiry into the limits of bankruptcy court jurisdiction. Plan confirmation opponents raise the lack of subject matter jurisdiction early and often. Resolving core matters, such as those under Section 365, may require more than adjudicating the debtor's business judgment and seeking determination of third-party rights. Further, disputes arise with insurers and those seeking indemnity.

Globalization means that even in small and mid-size cases, bankruptcy courts must frequently determine their ability to assert personal jurisdiction over foreign defendants and application of U.S. laws to transactions that occur, at least in part, outside of the U.S. Plans of reorganization may provide for bankruptcy oversight of matters and persons which have little connection with the case.

Outside of bankruptcy, federal courts have contracted constitutional standing and that trend may be taking root in the bankruptcy forum. It may also simply be that stakeholders previously have assumed without testing the limits of that jurisdiction.

Listen as this experienced panel of renowned bankruptcy practitioners discusses why understanding the limits on the bankruptcy court's constitutional and statutory "related to" and "supplemental" jurisdiction is more important than ever and offers practical strategies for supporting or challenging jurisdiction.

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Outline

  1. Constitutional vs. statutory jurisdiction
    1. Related to jurisdiction over third-party disputes
    2. Supplemental jurisdiction over third-party disputes
  2. Procedural issues
    1. Burdens of proof
    2. Timing of determination of jurisdiction
  3. Recurring scenarios
    1. Non-U.S. defendants
    2. Transactions outside the U.S.
    3. Plan provisions: third-party releases
    4. Disputes between creditors

Benefits

The panel will discuss these and other key issues:

  • To what extent can bankruptcy courts exercise in rem or in personm jurisdiction over third parties and state law claims?
  • Can bankruptcy courts exercise supplemental jurisdiction over "non-core," unrelated to" claims?
  • When do disputes become "related to" the bankruptcy case and does that relation cease?

Faculty

Gillman, Duane
Duane H. Gillman

Senior Counsel
Dentons

Mr. Gillman has represented the prevailing party in over 60 published opinions in the areas of bankruptcy litigation,...  |  Read More

McKinlay, Jessica
Jessica McKinlay

Assistant Professor of Law
University of Idaho College of Law

Professor McKinlay joins the College of Law to teach business and commercial law courses. She has been practicing law...  |  Read More

Ramsey, Natalie
Natalie D. Ramsey

Partner
Robinson & Cole

Ms. Ramsey is co-chair of the Bankruptcy + Reorganizations Group and the partner in charge of its Wilmington and...  |  Read More