Supreme Court of the United States · Official docket →
NexPoint Advisors, L.P., et al. v. Highland Capital Management, 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, about 5.3× the 4.1% base rate. The model weighted this up for counsel who has won certiorari before, a Fifth Circuit decision below, and a circuit split argued in the petition, and down for a business respondent.
Questions presented
Section 524(e) of the Bankruptcy Code provides 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.” 11 U.S.C. § 524(e). Consistent with that provision, the Fifth Circuit held below that the Bankruptcy Code generally prohibits courts from exculpating third parties from liability. Nonetheless, the court approved provisions in a reorganization plan that exculpated the debtor’s “Independent Directors” for any misconduct short of gross negligence, on the theory that those provisions merely tracked the common-law immunity of bankruptcy trustees. Other circuits have adopted different standards for common-law immunity, with some allowing claims for ordinary negligence and others limiting liability to intentional misconduct. The Fifth Circuit in this case also approved provisions exculpating both the debtor and other parties from ordinary business liabilities arising after confirmation of the reorganization plan, contrary to the holdings of other courts of appeals. The questions presented are:
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Whether a bankruptcy court may exculpate thirdparty misconduct that falls short of gross negligence, on the theory that bankruptcy trustees have common-law immunity for such misconduct.
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Whether a bankruptcy court may exculpate parties from ordinary post-bankruptcy business liabilities. (i)
Counsel of record
For petitioner
Jeffrey Alan Lamken
MoloLamken LLP
For respondent
Roy T. Englert Jr.
Kramer Levin Naftalis & Frankel LLP
Proceedings
- Jul 02 2024Petition DENIED.
- Jun 28 2024DISTRIBUTED for Conference of 7/1/2024.
- Jun 28 2024Supplemental brief of petitioners 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 petitioners 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.
- Mar 06 2023Reply of petitioners NexPoint Advisors, L.P., et al. filed. (Distributed)
- Feb 21 2023Brief of respondent Highland Capital Management, L.P. in opposition filed.
- Jan 16 2023Petition for a writ of certiorari filed. (Response due February 21, 2023)
- Dec 21 2022Application (22A303) granted by Justice Alito extending the time to file until January 16, 2023.
- Dec 16 2022Application (22A303) to extend further the time from January 5, 2023 to January 16, 2023, submitted to Justice Alito.
- Oct 12 2022Application (22A303) granted by Justice Alito extending the time to file until January 5, 2023.
- Oct 06 2022Application (22A303) to extend the time to file a petition for a writ of certiorari from December 6, 2022 to January 20, 2023, submitted to Justice Alito.