U.S. Supreme Court Makes Decision about Bankruptcy Sale Appeals

– The U.S. Supreme Court unanimously decided that 11 U.S.C. § 363(m) is not jurisdictional.
– The Court determined that the language of the statute does not implicate a court’s power to consider an appeal.
– Instead, the statutory language constrains the effect of a court’s reversal or modification under certain circumstances.
– The Court found that § 363(m) is more of a “statutory limitation” that requires parties to take certain procedural steps at certain specified times.
– The statutory context supported the Court’s determination that § 363(m) is not jurisdictional. – Bankruptcy court’s order allowing the lease assignment was denied a stay pending appeal
– District court dismissed the appeal stating that § 363(m) was jurisdictional and precluded arguments of waiver or judicial estoppel
– Supreme Court held that § 363(m) is not jurisdictional, allowing parties to assert waiver or estoppel against parties who change their stance on invoking § 363(m)

https://bergersingerman.com/news-insights/client-alert-u-s-supreme-court-unanimously-determines-that-statute-governing-bankruptcy-sale-appeals-is-not-jurisdictional