Cluster Holdco, LLC v. Byman

Summary

The United States District Court for the Southern District of Texas dismisses an appeal from a bankruptcy court order authorizing the Chapter 7 trustee to retain Orrick, Herrington & Sutcliffe LLP as special litigation counsel. The court holds that the retention order is interlocutory, is not appealable under the collateral-order doctrine, and does not warrant leave for interlocutory appeal. The appeal is dismissed for lack of appellate jurisdiction.

Holdings

1. Orders appointing counsel under the Bankruptcy Code are interlocutory and are not generally considered final and appealable.
2. The collateral-order doctrine does not apply to orders retaining special litigation counsel because such orders are not completely separate from the merits and are effectively reviewable after final judgment.
3. Leave to appeal is denied because it would not materially advance the termination of the litigation.

Questions Presented

1. Whether bankruptcy court's order retaining special litigation counsel is a final, appealable order
2. Whether the collateral-order doctrine applies to make the retention order immediately appealable
3. Whether leave to appeal an interlocutory retention order should be granted

Disposition

dismissed