United States Second Circuit

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In re Quigley Company, Inc., 11-2635

On appeal of a bankruptcy court order holding that an injunction issued in a corporation's bankruptcy proceedings applied to stay certain suits against its parent company, the district court's affirmance is reversed, where: 1) the Second Circuit had jurisdiction to hear the appeal, as the bankruptcy court's order was final; 2) the bankruptcy court was well within constitutional bounds when it exercised jurisdiction to enjoin the suits against the parent company; 3) the exercise of statutory bankruptcy jurisdiction to enjoin the suits was appropriate, since litigation of those suits would almost certainly have resulted in the drawing down of insurance policies that were part of the bankruptcy estate; and 4) the injunction, modeled on 11 USC section 524(g)(4)(A)(ii), did not enjoin the suits at issue.

Appellate Information

  • Decided 04/10/2012
  • Published 04/10/2012

Judges

  • Livingston

Court

  • United States Second Circuit

Counsel

  • For Appellant:
  • Sheila L. Birnbaum, Jeffrey L. Jonas