Supreme Court Skips Look at Bankruptcy Appeal Blocking Doctrine

The U.S. Supreme Court declined to take up a bankruptcy law battle over a legal tool that judges increasingly use to block appeals from court-approved restructuring plans.

The judicially created “equitable mootness” doctrine, which has been a controversy among practitioners for decades, recently has drawn heightened scrutiny following multiple federal appeals courts decisions’ to turn down challenges arising out of corporate bankruptcy cases. The doctrine often is invoked by reorganizing companies—and recognized by federal appeals courts—to prevent parties from disturbing bankruptcy plans that already are being implemented.

The justices Monday decided not to consider a petition from a creditor of ...