Aaron Hammer and HMB Legal Counsel Nearly Obliterate Equitable Mootness in Eighth Circuit

08/16/2021

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HMB Legal Counsel's Bankruptcy, Reorganization and Creditors' Rights Practice Group including Aaron L. Hammer, Nathan E. Delman and the late John W. Guzzardo, representing FishDish, LLP, preferred shareholders of bankruptcy VeroBlue Farms USA, Inc. at the U.S. Court of Appeals for the Eighth Circuit, successfully argued that the District Court prematurely dismissed FishDish's appeal by improperly invoking the judicial doctrine commonly known as equitable mootness.

After decades of sidestepping the issue, the Eighth Circuit finally created its own equitable mootness standard, requiring lower appellate courts to fully examine the underlying merits of a bankruptcy appeal rather than relying on equitable mootness for a swift dismissal. If lower courts do not follow suit, the Eight Circuit believed it will prime the U.S. Supreme Court to potentially abolish its use.

“The U.S. Constitution requires due process, not just judicial process.  For almost three years now, FishDish and many other shareholders have been denied their fundamental due process rights in the chapter 11 case of VeroBlue Farms”, said Aaron Hammer, Chairman of HMB’s Bankruptcy, Reorganization and Creditors’ Rights Practice Group. “We were confident that the District Court’s hasty dismissal of FishDish’s meritorious objections to VeroBlue Farm’s chapter 11 plan required further review and are pleased that we can finally give our client its long overdue day in court”.