Supreme Court of the United States · Official docket →
Highland Capital Management, L.P. v. NexPoint Advisors, L.P., et al.
Paid petition · United States Court of Appeals for the Fifth Circuit, No. 21-10449 · judgment September 7, 2022
Before the decision, roughly the 4.1% base rate. The model weighted this up for a Fifth Circuit decision below, a circuit split argued in the petition, and a business petitioner, and down for a business respondent.
Question presented
Section 524(e) of the Bankruptcy Code states that the “discharge of a debt of the debtor does not affect the liability of any other entity on, or the property of any other entity for, such debt.” According to the Fifth Circuit, even though the text refers to the effect of a discharge rather than to the powers of a bankruptcy court, section 524(e) “categorically bars” a court from confirming any chapter 11 plan of reorganization that releases third parties from liability, either in full or through their limited exculpation for negligence claims relating to the administration of the bankruptcy estate as in this case. In the opinion below, the Fifth Circuit acknowledged that, by contrast, the Second, Third, Fourth, Sixth, Seventh, Ninth, and Eleventh Circuits “read[] § 524(e) to allow varying degrees of limited third-party exculpations.” The question presented is whether section 524(e), as its text suggests, states only the effect of a discharge on third parties’ liability for a debtor’s own debts or instead, as the Fifth Circuit holds, constrains the power of a court when confirming a plan of reorganization. (i)
Counsel of record
For petitioner
Roy T. Englert Jr.
Kramer Levin Naftalis & Frankel LLP
For respondent
Douglas S. Draper
Heller Draper & Horn, LLC
Proceedings
- Jul 02 2024Petition DENIED.
- Jun 28 2024DISTRIBUTED for Conference of 7/1/2024.
- Jun 28 2024Supplemental brief of petitioner Highland Capital Management, L.P. filed.
- Jun 28 2024Supplemental brief of respondents NexPoint Advisors, L.P., et al. filed. VIDED.
- Dec 01 2023Rescheduled.
- Dec 01 2023DISTRIBUTED for Conference of 12/8/2023.
- Nov 08 2023DISTRIBUTED for Conference of 12/1/2023.
- Nov 06 2023Supplemental brief of respondents NexPoint Advisors, L.P., et al. filed. VIDED. (Distributed)
- Oct 19 2023Brief amicus curiae of United States filed. VIDED.
- May 15 2023The Solicitor General is invited to file a brief in this case expressing the views of the United States.
- Apr 25 2023DISTRIBUTED for Conference of 5/11/2023.
- Apr 21 2023Waiver of the 14-day waiting period for the distribution of the petition pursuant to Rule 15.5 filed by petitioner.
- Apr 19 2023Response to petition from respondents The Dugaboy Investment Trust and Get Good Trust filed. VIDED.
- Apr 11 2023Letter dated April 11, 2023 from counsel for respondents Highland Income Fund, et al. filed.
- Mar 20 2023Response Requested. (Due April 19, 2023)
- Mar 08 2023DISTRIBUTED for Conference of 3/24/2023.
- Feb 10 2023Brief of respondent NexPoint Advisors, L.P., et al. filed.
- Feb 06 2023Waiver of right of respondents Highland Income Fund; NexPoint Strategic Opportunities Fund; Highland Global Allocation Fund; and NexPoint Capital, Inc. to respond filed.
- Feb 06 2023Motion to extend the time to file a response is granted and the time is extended to and including February 15, 2023.
- Feb 06 2023Waiver of right of respondent The Dugaboy Investment Trust to respond filed.
- Feb 03 2023Motion to extend the time to file a response from February 8, 2023 to February 15, 2023, submitted to The Clerk.
- Jan 05 2023Petition for a writ of certiorari filed. (Response due February 8, 2023)
- Nov 08 2022Application (22A397) granted by Justice Alito extending the time to file until January 5, 2023.
- Nov 03 2022Application (22A397) to extend the time to file a petition for a writ of certiorari from December 6, 2022 to January 5, 2023, submitted to Justice Alito.