Plain-English summary
Court rules §363(m) is not jurisdictional and sends case back to lower court
The Court unanimously held that 11 U.S.C. §363(m) — a provision limiting relief on appeals from bankruptcy sales that were not stayed — is not a jurisdictional rule that bars appellate courts from hearing such appeals. The case was vacated and remanded for further proceedings consistent with that conclusion.
Why this matters
This decision clarifies that §363(m) does not automatically block appellate review of bankruptcy sale orders when a sale proceeded without a stay. Parties who fail to seek a stay may still have avenues to raise challenges on appeal, though other rules (forfeiture, waiver, and equitable doctrines) can limit relief. The ruling affects how quickly sales can be finalized and how litigants approach seeking stays in bankruptcy sales.
Who may feel it
- Buyers of assets in bankruptcy sales (stalking-horse bidders, winning purchasers)
- Creditors and parties objecting to bankruptcy sale approvals
- Debtors and trustees conducting asset sales under the Bankruptcy Code
- Bankruptcy and appellate courts handling sale-order appeals
Key questions