Bankruptcy, Jurisdiction, Procedural Due Process, Mootness
As direct and indirect post-sale claims against the successor corporation arose within the bankruptcy process and related to the injunctions issued, the bankruptcy court properly exercised jurisdiction over the claims.
Prepetition tort claims against a successor corporation state a claim in bankruptcy where the both the contingent flaw and the relationship from which the duty arose were present prior to the order of sale.
No clear error in court's holding that Procedural Due Process requires--prior to approval of sale--direct purchaser notice of flaws that manufacturer reasonably should have known about.
To determine PDP prejudice, court must have a fair assurance that the prior decision was not substantially swayed.
Given high stakes, there was a substantial likelihood of settlement for claims directly relating to the defect.
Court's ruling that claims against successor corporation were equitably moot was advisory and is therefore vacated.
In re Motors Liquidation Co.
