Hours ago the Supreme Court of the United States resolved a split among several circuits of the U.S. Courts of Appeal on whether Section 363(m)

Hours ago the Supreme Court of the United States resolved a split among several circuits of the U.S. Courts of Appeal on whether Section 363(m)

of the Bankruptcy Code is jurisdictional in nature. Section 363(m) provides that, under certain circumstances, the validity of a debtor’s (or a trustee’s) sale or lease of estate property will not be affected by an appeal.

The Court held that such provision is not jurisdictional. The upshot being that, under equitable doctrines such as waiver and forfeiture, courts disturb transfers to good faith purchasers.