The always erudite Steve Jakubowski provides commentary here on his Bankruptcy Litigation Blog about a recent decision by Judge Scheindlin (of e-discovery fame), regarding her decision to dissolve a stay pending appeal of a plan confirmation in connection with the Adelphia bankruptcy case. It is a useful lesson on several aspects of litigation, including why one should not seek a stay and/or an appeal if one is not prepared to post the necessary bond.
Here is an excerpt from his post–and from the court’s decision:
Judge Scheindlin realized, as she put it, that the bondholders "used the Court to obtain bargaining leverage to extract a better deal for their client with no intention of ever posting a reasonable bond." "[Their] inconsistent positions," she found, "have had an impact on judicial integrity and have prejudiced Appellees." "Such behavior," she observed, "is cynical at best and unprincipled at worst." ACC Bondholder Group v. Adelphia Comm. Corp. (In re Adelphia Comm. Corp.), 07-1172 (S.D.N.Y. 4/2/2007) (pdf at p.14 n.33).
As an aside, Steve’s blog is a standard by which other lawyers should measure their blogs. Also, notable is the eulogy about his mother that he posted about here last year, which was one of the most moving and inspirational writings I have ever read. Although it was especially touching for me since it followed my own saintly mother’s passing (which I still mourn), I am willing to bet that it will also be an emotional tear-jerker for most thoughtful and sensitive people. I highly recommend it for motivational reading.