Supreme Court Ruling Maintains Strong Policy Against Collateral Attacks on Orders
The Supreme Court case Travelers v. Bailey dealt with whether bankruptcy courts can release non-debtors from claims not related to the bankruptcy estate. The Court decided the case based on principles of res judicata and final orders, without addressing the main issue. Another case, Ad Hoc Committee v. Delta Air Lines, also raised this question but was not taken up by the Court. This suggests the Court is focused on preventing challenges to final orders, especially in bankruptcy cases, and is not currently interested in examining non-debtor releases or the jurisdiction of bankruptcy courts in these matters.