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BEHRMANN v. NATIONAL HERITAGE FOUNDATION

No. 10-2015.

663 F.3d 704 (2011)

John R. BEHRMANN; Nancy Behrmann; Highbourne Foundation; Maurice Townsley; Theresa Townsley; Townsley Family Foundation, The; Dolores F. Anderson, a/k/a Dodie Anderson; Dodie Anderson Foundation, Plaintiffs-Appellants, v. NATIONAL HERITAGE FOUNDATION, Incorporated; Official Committee of Unsecured Creditors, Defendants-Appellees.

United States Court of Appeals, Fourth Circuit.

Decided: December 9, 2011.

Attorney(s) appearing for the Case

ARGUED: Glenn W. Merrick , G.W. Merrick & Associates, LLC, Greenwood Village, Colorado, for Appellants. Erika Lynn Morabito , Patton Boggs, LLP, Washington, D.C., for Appellees. ON BRIEF: Gregory H. Counts , Tyler, Bartl, Ramsdell & Counts, PLC, Alexandria, Virginia, for Appellants.

Vacated and remanded by published opinion. Judge DIAZ wrote the opinion, in which Chief Judge TRAXLER and Judge AGEE joined.

OPINION

DIAZ, Circuit Judge:

We consider in this case the circumstances under which a bankruptcy court may approve nondebtor release, injunction, and exculpation provisions as part of a final plan of reorganization under Chapter 11 of the Bankruptcy Code.

We hold that equitable relief provisions of the type approved in this case are permissible in certain circumstances. A bankruptcy court must, however, find facts sufficient to support its legal...

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