Eleventh Circuit Holds That Equitable Mootness Is Alive in Chapter 9

On August 16, 2018, the United States Court of Appeals for the Eleventh Circuit dismissed an appeal relating to Jefferson County, Alabama’s Chapter 9 proceeding on equitable mootness grounds.

Bennett v. Jefferson Cty., Ala., Case No. 15-11690, 2018 WL 3892979 (11th Cir. Aug. 16, 2018). This decision brings the Eleventh Circuit in line with other courts and should provide more assurances to municipal debtors that they will have access to the full range of arguments in potential appeals following confirmation of a plan of adjustment. Conversely, the decision will put the onus on plan opponents to seek and obtain stays pending appeal, potentially including in Puerto Rico’s restructuring under the Puerto Rico Oversight, Management, and Economic Stability Act.

This article was republished by Law360.