Academics Urge Supreme Court to Consider Bankruptcy Guardrails

Law professors pushed the US Supreme Court to consider an appeal from Highland Capital Management LP surrounding a bankruptcy court’s authority to screen lawsuits and shield certain restructuring professionals from liability.

The justices should overturn two opinions from the US Court of Appeals for the Fifth Circuit narrowing the use of the so-called gatekeeper and exculpation provisions in bankruptcy plans, five bankruptcy law academics told the high court in an amici brief filed Tuesday.

The Dallas-based investment firm has been litigating with its former chief executive, James Dondero, over various elements of its bankruptcy since its reorganization plan was approved ...