SCOTUS Briefs

2016 Supreme Court term

CASIMIR CZYZEWSKI, ET AL. v. JEVIC HOLDING CORP., ET AL.

Dockets 15-649Argued
Argued
December 7, 2016
AI-generated independent summary

This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.

In brief

Overview

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Background and question before the Court

Justice Alito asked whether the argument regarding Section 103(a) makes the priority provisions in Chapter 7 and Chapter 11 superfluous.

Justice Breyer asked whether, in Chapter 11, the bankruptcy judge must approve the settlement.

According to Justice Kennedy, justice Kennedy questioned whether the core issue was an objection to the distribution of assets rather than to approval of the settlement.

Justice Sotomayor asked how the excluded creditor can be protected from being preyed on by other creditors.

Justice Sotomayor asked why truck drivers were excluded from receiving what they demanded.

Justice Breyer asked for clarification of what a structured settlement is.

Chief Justice Roberts asked how the reasonableness of the petitioners’ position relates to the extraordinariness of the circumstances.

Justice Breyer asked what the Code in § 363(b) says about a trustee’s ability to sell a suit.

What each side argues

Petitioners

Petitioners asked for conversion to Chapter 7 so that the Chapter 7 trustee could pursue the fraudulent‑transfer claim.

Petitioners (via Ms. Spinelli) argued that Section 363(b) is not a means of distributing estate assets; it only permits approval of a settlement or sale, not distribution that violates priority.

Respondents

Respondents argued that a court could not resolve the case by ordering distribution of assets that would violate the priority scheme.

Sun Life

According to Sun Life, sun Life, through Mr. Landau, said that without a global settlement of the WARN claim against Sun, Sun did not want a settlement that would fund litigation against it.

What happened at oral argument

Petitioners asked for conversion to Chapter 7 so that the Chapter 7 trustee could pursue the fraudulent‑transfer claim.

Respondents contended that a court cannot order distribution of assets that would violate the priority scheme.

Ms. Harrington explained that state assets belong to the estate, not to the debtor or a subset of creditors.

According to Mr. LANDAU, mr. Landau argued that the absolute priority rule does not apply to plan assets before a plan is confirmed.

According to Mr. LANDAU, mr. Landau suggested the dispute could be resolved through the traditional § 363(b) analysis, which allows for “play in the joints,” unlike the absolute priority rule.

According to Mr. LANDAU, mr. Landau warned that the respondents’ objection to distribution would “come back to bite them” because there is no legal difference between a distribution of assets on the first day and the pre‑petition wage and benefit claims.

According to Sun Life, sun Life, via Mr. Landau, said that without a global settlement of the WARN claim, Sun did not want a settlement that would fund litigation against it.

Petitioners (via Ms. Spinelli) argued that § 363(b) does not permit distribution of estate assets in violation of priority.

What the Court decided

Pending This section will be added when the relevant Court material is available.

Why it matters

Source-limited The available primary sources do not support a complete explanation yet.

Terms to know

estate
State assets belong to the estate, not to the debtor or a subset of creditors.

Primary sources

Read the source materials on the official site or open the immutable repository copy used for this guide.

  • 7626db769c9e3d5e6822-r1-36d580a49e0224a0.pdforal argument transcript
    Archived copy

Guide generated September 25, 2026. Automated validation accepted this version.