United States Second Circuit

In nonparties' appeal from the district court's order holding that its jurisdiction in rem and its equitable powers provided it with sufficient authority to issue an injunction barring non-parties from filing involuntary bankruptcy petitions against any of the defendants, the order is affirmed where, while it should be sparsely exercised, district courts possess the authority and discretion to enter anti-litigation orders, including those that bar the filing of involuntary bankruptcy petitions absent the district court's permission.

Appellate Information

• Argued 11/16/2009
• Decided 06/15/2010
• Published 06/15/2010

Judges

• POOLER, Circuit Judge:, Before POOLER and WESLEY, Circuit Judges, and KEENAN, District Judge.

Court

• United States Second Circuit

Counsel

• For Appellant:
  
• Shalom Jacob (Shmuel Vasser, on the brief), Dechert LLP, New York, N.Y. for International Ad-Hoc Committee of Wextrust Creditors; Martin S. Siegel (Aaron B. Lauchheimer, on the brief), Brown Rudnick LLP, New York, N.Y., for International Consortium of Wextrust Creditors, Interested Parties-Appellants., Mark S. Radke (Timothy J. Coleman, on the brief) Dewey & LeBoeuf LLP, Washington, D.C., for Timothy J. Coleman, Receiver for the Wextrust Entities and Affiliates, Receiver.


• For Appellees:
  
• David Lisitza, Senior Counsel (David M. Becker, General Counsel, Mark D. Cahn, Deputy General Counsel, Jacob H. Stillman, Solicitor, John W. Avery, Senior Litigation Counsel, Michael J. Berman, Bankruptcy Counsel, on the brief), Securities and Exchange Commission, Washington, D.C., for the Securities and Exchange Commission, Appellee.