SCOTUS DENIES CERTIORARI
On June 26, 2017, the U.S. Supreme Court denied the State of Florida’s Petition for Certiorari in the case of Fla. Dept. of Rev. v. Gonzalez (U.S. Supreme Court Case No. 16-1013). This decision brings to an end the 5-year fight Mr Schwitalla has waged for his client. Attorneys General of 17 other States joined the State of Florida, and filed a Brief in Support of Florida as amici curiae.
SCOTUS PERSUADED BY BRIEF IN OPPOSITION
The Supreme Court reached its decision only after asking Mr. Schwitalla to file a response on behalf of his client. It then considered Mr. Schwitalla’s 8,485-word Brief in Opposition to Petition for Certirorari. Mr. Schwitalla persuaded the Supreme Court to decline to hear the case, which sends a clear signal to all creditors that the terms of a confirmed plan are binding upon them as to all issues that were, or could have been, litigated at or before confirmation. The Supreme Court’s decision is of great interest to Chapter 13 and Chapter 11 attorneys alike, as the State of Florida’s position – rejected by the U.S. Supreme Court – represented an attack on the finality and binding effect of confirmed plans of reorganization.