Severing Third-Party Releases: A Path Forward After Patterson

This article reviews non-consensual third-party releases in Chapter 11 bankruptcies, the doctrine of equitable mootness, and severance of third-party releases in bankruptcy appeals. Additionally, the article discusses the difference between severance and wholesale invalidation of third-party releases in Ch. 11 reorganization plans based on the Eastern District of Virginia opinion Patterson v. Mahwah Bergen Retail Grp., Inc., published in January, 2022. Finally, the article provides several factors for practitioners arguing on appeal to the district court or Bankruptcy Appellate Panel to either sever or maintain non-consensual third-party releases.