Behrmann v. National Heritage Foundation, Inc., No. 10-2015
Decided Dec. 12, 2011
The Fourth Circuit Court of Appeals held that a bankruptcy court may approve non-debtor release, injunction, and exculpation provisions as part of a final plan of reorganization under Chapter 11 of the Bankruptcy Code in certain circumstances. However, a bankruptcy court must find facts sufficient to supports its legal conclusion that a particular debtor’s circumstances entitle it to such relief. The bankruptcy court in this case did not make findings of fact sufficient to support that the debtor was entitled to equitable relief of this type. Therefore, the court vacated the judgment of the district court and remanded for further proceedings.
-Sara I. Salehi