Philip Jay Fetner v. Kevin R. McCarthy, et al.

This matter concerns the purported settlement of legal causes of action allegedly owned by a debtor as part of a bankruptcy estate. Petitioner asks this Court to review the following questions: (i) Did the Chapter 7 Trustee fail to provide transparency and observe its fiduciary duties to Debtor, all as allowed by the Bankruptcy Court? (ii) Did the Bankruptcy Court further violate Debtor’s due process rights in approving the Settlement? (iii) Was the Settlement ordered outside legitimate bankruptcy purpose under the Code and contrary to the law of Stern v. Marshall? (iv) Was the accompanying Bar Order also overbroad and unconstitutional? (v) Did the District Court fail to abide by the mandate of 28 U.S.C. 455(a) and also fail to address Debtor’s appeal? In the Petitioner’s view, the so-called “Wilmington Settlement” was prepared by a Chapter 7 Trustee on a desperate pecuniary quest operating without regard to transparency or its fiduciary duties, and was imposed by a bankruptcy court, which in a fog of bias acted as a shadow prosecutor and violated Petitioner’s fundamental constitutional due process. The Bankruptcy Court approved not only a sham compromise over which it had no final jurisdiction under Stern v. Marshall or legitimate bankruptcy interest but which also included an unconstitutional overbroad bar order unrelated to bankruptcy purpose.