Texas District Court: Equitable Mootness Doctrine Does Not Preclude Appellate Review of Chapter 11 Plan Exculpation Clause

Summary

This article discusses whether the equitable mootness doctrine precludes appellate review of a Chapter 11 exculpation clause. Exculpation clauses limiting the liability of certain entities for actions taken in connection with a bankruptcy case are a common feature of Chapter 11 plans. However, courts disagree over the permitted scope of such clauses. They also disagree as to whether an order confirming a Chapter 11 plan that includes exculpation and third-party release provisions is insulated from appellate review under the doctrine of equitable mootness.