In Re: Mallinckrodt plc, et al.

Filing 13

Recommendation that Bankruptcy Appeal be withdrawn from mandatory mediation. Signed by Judge Mary Pat Thynge on 10/12/2021. (Taylor, Daniel)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

In re:

:
:
MALLINCKRODT PLC, et al.,
:
:
Debtor.
:
__________________________________ :
:
CITY OF MARIETTA,
:
:
Appellant,
:
:
v.
:
:
MALLINCKRODT PLC, et al.,
:
:
Appellee.
:
__________________________________ :

Chapter 11
Bankruptcy Case No. 20-12522 (JTD)

C.A. No. 21-1155-LPS
Bankr. BAP No. 21-58

RECOMMENDATION
At Wilmington this 12th day of October, 2021.
WHEREAS, pursuant to paragraph 2(a) of the Procedures to Govern
Mediation of Appeals from the United States Bankruptcy Court for this District dated
September 11, 2012, the court conducted an initial review, which included information
from counsel1, to determine the appropriateness of mediation in this matter;
WHEREAS, as a result of the above screening process, the issues
involved in this case are not amenable to mediation and mediation at this stage would
not be a productive exercise, a worthwhile use of judicial resources nor warrant the

1

The parties provided a joint submission on mandatory mediation on August 31,
2021. Consistent with this Court’s Oral Order at D.I. 3, their joint submission was not
docketed since it dealt with mediation.

expense of the process.
This bankruptcy appeal involves an Order Sustaining Debtors’ Objection to City
of Marietta Class Proof of Claim decided by the Honorable John T. Dorsey on July 27,
2021. The Appeal was filed on August 10, 2021. On September 2, 2021, a Motion to
Consolidate Cases for Procedural Purposes and for Related Relief was filed by
Appellee Mallinckrodt plc. The present Appeal is one of many filed in this Court
involving Debtor, Mallinckrodt plc. This appeal filed by the City of Marietta, who is
named plaintiff in a class action, City of Marietta v. Mallinckrodt ARD LLC, et al., filed in
the Northern District of Georgia on behalf of itself and the proposed class it seeks to
represent, is the Appellant on this Appeal and Debtors Mallinckrodt and its af filiated
debtors in possession, are the Appellees. In the April 2021 tim e frame, Appellee and
Appellant had discussions regarding a global mediation of the Dispute collectively with
similar disputes of other parties in connection with Appellees’ bankruptcy case.
Although Appellant understands that the proposed m ediation occurred with other
parties, no mediation with Appellant occurred at that time. Appellant is interested in
mediation of the dispute.
Appellees disagree with Appellant’s characterization of prior events and requests
this matter be withdrawn from mandatory mediation based upon the relief granted by
the Bankruptcy Court and the issues on Appeal. The Bankruptcy Court disallowed the
proof of claim filed by Marietta on behalf of the Proposed Class and this Appeal
pertains to whether the Bankruptcy Court committed legal error in doing so.
On September 2, 2021, a motion to consolidate appeals for procedural purposes
and for related relief was filed by the Appellees to be consolidated with another appeal,
2

City of Rockford, Illinois, et al. v Mallinckrodt plc, 21-1161 LPS which it claims involves
overlapping issue of law and fact. Appellants agree that consolidation is appropriate,
but the appellants in the other appeal do not.
Until the consolidation issue is decided, the parties propose the f ollowing briefing
schedule:
Appellants’ Opening Brief(s)

November 29, 2021

Appellees’ Responsive Brief(s)

December 28, 2021

Appellants’ Reply Brief(s)

January 11, 2021

THEREFORE, IT IS RECOMMENDED that, pursuant to paragraph 2(a)
Procedures to Govern Mediation of Appeals from the United States Bankruptcy Court
for this District and 28 U.S.C. § 636(b), this matter be withdrawn from the mandatory
referral for mediation and proceed through the appellate process of this Court. No
objections to this Recommendation pursuant to 28 U.S.C. § 636(b)(1)(B), F ED. R. CIV.
P. 72(a) and D. DEL. LR 72.1 are anticipated since it is consistent the parties request,
specifically their proposed briefing schedule.
Local counsel are obligated to inform out-of-state counsel of this Order.

/s/ Mary Pat Thynge
Chief U.S. Magistrate Judge Mary Pat Thynge

3