Revolt Weakens Jones' Control of Fifth Circuit Law: Bankruptcy BusinessWeek

29.08.11

(Bloomberg bankruptcy columnist Bill Rochelle regularly writes about important court opinions on bankruptcy law. The following items are a collection of cases handed down during his August vacation. The regular column can be found at NI ROCHELLE <GO>.)

Aug. 29 (Bloomberg) -- Sixteen judges on the U.S. Court of Appeals in New Orleans heard reargument in a bankruptcy case and thirteen voted to reverse the original opinion handed down in September by Chief Judge Edith H. Jones, who was writing for a three-judge panel.

Coupled with a ruling less than a week before where Jones had also written the original opinion, the two cases together could imply that a majority of the appeals court judges in the Fifth U.S. Circuit in New Orleans differ with the chief judge on the direction she was giving to bankruptcy law.

Jones, sitting on many three-judge panels involving key bankruptcy appeals, was moving Fifth Circuit law on corporate reorganizations and individual bankruptcies in directions that diverge from other U.S. courts of appeal. The Fifth Circuit, based in New Orleans, makes law binding on bankruptcy and district courts in Texas, Louisiana and Mississippi.

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