Whether 11 U.S.C. §363(m) applies to asset sales under reorganization plans and whether 'equitable mootness' shields unauthorized practices

Harrington v. Purdue Pharma, L.P. , 603 U.S. 204, 227 (2024) makes clear that : “the bankruptcy code does not authorize a release and injunction that, as part of a [c hapter 11] plan … effectively seeks to discharge claims against a nondebtor without the consent of affected claimants .” In this case, the Third Circuit held the opposite: the bankruptcy code does authorize nonconsensual third -party releases as part of a plan insofar as the plan make s the releases an integral part of a 11 U.S.C. §363(b) -authorized asset sale immunized by 11 U.S.C. §363(m) . But §363(m) does not immunize ‘terms of sale’ under ‘a plan’ —only “a sale” in fact made “under subsection (b) or (c)” of §363. Other circuits respect these limits. Judge Rendell condemned the Third Circuit’s decision as a “dangerous transactional precedent.” Judge Rendell w ould have resolved the case through “equitable mootness” : a problematic judge -invented abdication of jurisdiction unanimously embrac ed by the circuits but never once reviewed by the Suprem e Court despite over 40 years of percolation . The question s presented are : 1. Whether 11 U.S.C. §363(m) applies to asset sales under reorganization plans —and if so, whether §363(m) immunize s Purdue -forbidden releases. 2. Whether “equitable mootness ” exists—and if so, whether it shields unauthorized practices. ii PART IES TO THE PROCEEDING PETITIONERS (Appellants in the Third Circuit ) The case -captioned “Lujan Claimants ” are 75 individual survivors of sexual abuse , all represented by the law firm of Lujan & Wolff LLP. PRIMARY RESPONDENTS (Appellees in the Third Circuit ) •Boy Scouts of America; •Delaware BSA, LLC; •Coalition of Abused Scouts for Justice; •Future Claimants’ Representative; •Zalkin Law Firm, P.C.; •Pfau Cochran Vertetis Amala PLLC; •Hartford Accident and Indemnity Company; •First State Insurance Company; •Twin City Fire Insurance Company; •Navigators Specialty Insurance Company; •Century Indemnity Company (as success or to CCI Insurance Company, as successor to Insuran ce Company of North America and Indemnity Insur ance Company of North America); •Federal Insurance Company; •Westchester Fire Insurance Company; •American Zurich Insurance Company; •American Guarantee Insurance Company; •Steadfast Insurance Company; •Clarendon National Insurance Company (as to Clarendon America Insurance Company); iii PARTIES T O THE PROCEEDING —cont’d PRIMAR Y RESPONDENTS ---cont’d (A ppellees in the Third Circuit ) •River Thames Insurance Company Limited (as successor to Unionamerica Insurance Company Limited, on its own behalf and as successor to St. Katherine Insurance Company Limited); •Zurich American Insurance Company, (as succ essor to Maryland Casualty Company, Zurich Insurance Company, and Maryland General Insurance Company); and •Ad Hoc Committee of Local Councils of the Boy Scouts of America. SECONDARY RESPONDENTS (Appellants in the Third Circuit ) •Dumas & Vaughn (D&V) Claimants; •National Union Fire Insurance Company of Pittsburgh, Pa.; •Lexington Insurance Company; •Landmark Insurance Company; •Insurance Company of the State of Pennsylvania; •Allianz Global Risks US Insurance Company; •National Surety Corporation; •Interstate Fire & Casualty Company; •Arch Insurance Company; •Argonaut Insurance Company; •Colony Insurance Company; •Arrowood Indemnity Company; •Continental Insurance Company; •Columbia Casualty Company; iv PART IES TO THE PROCEEDING —cont’d SECONDARY RESPONDENTS —cont’d (Appellants in the Third Circuit ) •Gemini Insurance Company; •General Star Indemnity Company; •Great American Assurance Company; •Great American E&S Insurance Company; •Indian Harbor Insurance Company (on behalf of itself and as successor in interest to Catlin Specialty Insurance Company); •Liberty Mutual Insurance Company; •Ohio Casualty Insurance Company; •Liberty Insurance Underwriters, Inc.; •Liberty Surplus Insurance Corporation; •Munich Reinsurance America, Inc.; •Traders and Pacific Insurance Company; •