Reid and Hellyer, APC v. Laski, No. 16-56856 (9th Cir. 2018)
Annotate this CaseIn this consolidated bankruptcy appeal, two law firms challenged the bankruptcy court's order approving a settlement for an involuntary Chapter 11 bankruptcy. The Ninth Circuit affirmed the district court's dismissal of the appeals, holding that the firms forfeited their objection to the settlement agreement because neither firm explicitly objected to the settlement or entered an appearance. Furthermore, the evidence on the record regarding the bankruptcy court and trustee's understanding that the firms were implicitly objecting was not clear enough to overcome such failures. The panel assumed without deciding that the law firms' challenge should be reviewed for plain error, rather than dismissed without reaching the merits, and found that the bankruptcy court did not err in approving the settlement agreement.
Court Description: Bankruptcy The panel affirmed the district court’s judgment in two law firms’ appeals from the bankruptcy court’s order approving a settlement of an involuntary Chapter 11 bankruptcy. The panel held that the firms, representing the debtor and the unsecured creditors’ committee, forfeited their objection to the settlement agreement because: (1) neither firm, on its own behalf, explicitly objected to the settlement or entered an appearance at the settlement hearing; and (2) the record evidence that the bankruptcy court and trustee understood the firms to be implicitly objecting was not clear enough to overcome those failures. Assuming without deciding that the law firms’ challenge should consequently be reviewed for plain error, rather than dismissed without reaching the merits, the panel concluded that the bankruptcy court did not err in approving the settlement agreement.
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