CASIMIR CZYZEWSKI, et al., Petitioners v. JEVIC HOLDING CORP., et al., 580 U.S. 451

Summary

HOLDINGS: [1]-A distribution scheme ordered in connection with the dismissal of a Chapter 11 case could not, without the consent of the affected parties, deviate from the basic priority rules that applied under the primary mechanisms the Bankruptcy Code established for final distributions of estate value in business bankruptcies; [2]-The workers with a WARN Act judgment had standing to challenge a structured dismissal where a settlement without a violation of ordinary priority rules remained a reasonable possibility, and the workers' fraudulent-conveyance claim could have had litigation value; [3]-Congress had not authorized a rare case exception in 11 U.S.C.S. § 349(b) given that a court could not alter the balance struck by the statute, not even in rare cases.