Showing posts with label unknown unknowns. Show all posts
Showing posts with label unknown unknowns. Show all posts

Friday, February 11, 2022

Fifth Circuit Opinion Upholds Limits on Actions Between Non-Debtors

 In a case involving multiple parties and proceedings, the Fifth Circuit has affirmed lower court rulings which prohibited one non-debtor from suing a second non-debtor and awarded sanctions against a party that told a state court to disregard the Bankruptcy Court's orders. In the Matter of PFO Global, Incorporated, Case No. 20-10885 (5th Cir. 2/9/22), which can be found here. While the result may sound extreme, it appears to be an unintended consequence of an agreed order entered years earlier.