Justices Won’t Hear Ch. 11 Equitable Mootness Case

By Carolina Bolado (June 6, 2022, 11:43 AM EDT) — The U.S. Supreme Court declined Monday to take up a Florida developer’s request to review the doctrine of “equitable mootness” in a dispute over a bankrupt Palm Beach hotel that was used to orchestrate an EB-5 immigration visa fraud scheme.

The high court rejected developer Glenn Straub’s petition for writ of certiorari asking for reconsideration of an Eleventh Circuit order dismissing two of his company’s bankruptcy appeals because of equitable mootness, which bars appeals if the relief requested would disturb confirmed Chapter 11 plans.

Straub’s company KK-PB Financial LLC said the bankruptcy court unfairly zeroed out its $27 million claim against…

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