Chapter 4, K. Jurisdiction Post-Confirmation

JurisdictionUnited States

K. Jurisdiction Post-Confirmation

Cases under chapters 9, 11, 12 and 13 of the Bankruptcy Code culminate in the confirmation of a plan of reorganization. Generally, the confirmation of a reorganization plan constitutes a final judgment. Any issues that were raised or could have been raised in the confirmation proceeding are barred, and res judicata principles apply.108

Most reorganization plans contain a retention-of-jurisdiction provision, providing the bankruptcy court with exclusive jurisdiction over certain matters related to the administration and enforcement of the plan. However, if a bankruptcy court lacks subject-matter jurisdiction over a dispute, the parties cannot create it by agreement even in a reorganization plan.109 A bankruptcy court has limited jurisdiction post-confirmation and typically does not have jurisdiction over the affairs of the post-confirmation debtor and its creditors, particularly for claims arising post-petition.110

As a general principle, courts have the inherent authority to enforce their own orders.111 If an order states that a court retains jurisdiction or incorporates the terms ofsettlement, the court has ancillary jurisdiction to enforce its own order.112 Courts have consistently held that a bankruptcy court retains jurisdiction, inter alia, to enforce its confirmation order.113


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Notes:

[108] In re Chattanooga Wholesale Antiques Inc., 930 F.2d 458 (6th Cir. 1991).

[109] In re Continental Airlines Inc., 236 B.R. 318 (Bankr. D. Del. 1999).

[110] Id.

[111] Id.

[112] Kokkonen v. Guardian Life Insur. Co. of America, 511 U.S. 375 (1990).

[113] Continental Airlines, supra.

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