In Carickhoff, Chapter 7 Trustee v. Goodwin (In re Decade S.A.C.), Adv. Proc. No. 19-50095 (CSS) (Del. Bankr. March 19, 2020), U.S. Chief Bankruptcy Judge Christopher Sontchi of the District of Delaware refused to grant a motion to stay bankruptcy proceedings pending an appeal to the district court on the grounds that the appeal had divested the bankruptcy court of jurisdiction. In so doing, he adopted the divestment doctrine, whereby the filing of a notice of appeal divests the court of origin of its control over those aspects of the case involved in the appeal, but does not divest the origin court of jurisdiction to decide issues and proceedings different from and collateral to those involved in the appeal.

In Carickhoff, the Chapter 7 trustee filed a complaint to determine the property of the debtors’ estate against the defendants in connection with a dispute concerning a share purchase agreement. The multicount complaint sought a declaratory judgment regarding the enforceability of the agreement between the debtors and the defendants. In response to the complaint, the defendants asserted four counterclaims.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]