U.S. Court of Appeals for the Second Circuit
In re: Lehman Brothers Holdings Inc.
Judges Jacobs, Chin and Droney
Background: The appellants, Lehman Brothers Australia and Dante Noteholders, appealed from the dismissal of their motions for leave to intervene. They argued that they should be allowed to intervene because they were parties in interest, the interest in the argued over collateral was being affected by the bankruptcy proceedings, and that they would be bound by any judgment rendered against their trustee. After the bankruptcy court denied their motions, they appealed to the district court which held that the bankruptcy court’s order was not a final appealable order.
Ruling: The Second Circuit vacated and remanded. The court held that, given the circumstances, the bankruptcy court’s denial of the motions to intervene was a final appealable order. The court reasoned that the denial of the opportunity to be heard concludes the matter for all practical purposes for the would-be intervenor.
Andrew K. Glenn of Kasowtitz, Benson, Torres & Friedman for the appellants; Richard W. Slack of Weil, Gotshal & Manges for the appellee