Philadelphia and Wilmington partner Andy Kassner and associate Joe Argentina published a bankruptcy column in The Legal Intelligencer. The article, titled, “Ninth Circuit Reviews Claims Against Creditor Committee Chair,” discussed the ruling in Blixseth v. Brown in which the court found that creditors’ committee members are afforded the same protections for their actions that are traditionally given to bankruptcy trustees.
Andy and Joe explain the appointment and duties of official creditors’ committees, which are often misunderstood. They also outline the facts of the long-running saga of Blixseth v. Brown and the Ninth Circuit’s reasoning in affirming in part and vacating and remanding in part decisions regarding dismissal of claims brought against the chair of the creditors’ committee.
Andy and Joe conclude by explaining what one should do to avoid claims should they decide to participate as a member of a creditors’ committee in a bankruptcy case. “The appointment comes with real responsibilities, and committee members should consult with counsel to the committee, and, at times, their own individual counsel, to ensure their actions are appropriate for a committee member and, if possible, satisfy applicable standards to fall within judicial immunity.”