Second Circuit: In re: BGI, Inc.

U.S. Court of Appeals for the Second Circuit – Bankruptcy – Equitable Mootness

In re: BGI, Inc.

13-226-bk; 13-2288-bk; 13-2300-bk

Judges Kearse, Straub and Carney

Background: At issue is whether the doctrine of equitable mootness applies in Chapter 11 liquidation proceedings. The appellants are holders of unredeemed consumer gift cards issued by BGI. They sought to vacate a judgment of the district court dismissing their challenges to three Bankruptcy Court orders. The Bankruptcy Court denied motions for leave to file late proofs of claim, rejected and discharged an untimely proof of claim, and denied as moot a motion for class certification.

Ruling: The Second Circuit affirmed. The court held that the appellants did not overcome the presumption that their appeals, which relate to a substantially consummated liquidation plan, are equitably moot.

Clinton A. Krislov for the appellants; Bruce D. Buechler of Lowenstein Sandler for the appellees