In Re: Mallinckrodt plc, et al.

Filing 8

Recommendation that Bankruptcy Appeal be withdrawn from mandatory mediation. Signed by Judge Mary Pat Thynge on 1/27/2022. (Taylor, Daniel)

Case 1:21-cv-01780-LPS Document 8 Filed 01/27/22 Page 1 of 3 PageID #: 29318

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF DELAWARE

In re:

:
:
MALLINCKRODT PLC, et al.,
:
:
Debtors.
:
__________________________________ :
:
ACTHAR INSURANCE CLAIMANTS,
:
:
Appellant,
:
:
v.
:
:
MALLINCKRODT PLC, et al.,
:
:
Appellees.
:
__________________________________ :

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

C.A. No. 21-1780-LPS
Bankr. BAP No. 21-88

RECOMMENDATION
At Wilmington this 27th day of January, 2022.
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
counsel,1 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 expense of
the process.
1

Written information was provided by counsel for the parties which is not made
part of the court record because it relates to mediation.

Case 1:21-cv-01780-LPS Document 8 Filed 01/27/22 Page 2 of 3 PageID #: 29319

The present appeal relates to a December 6, 2021 Order of Bankruptcy Court
Judge John T. Dorsey sustaining the Debtors’ objection to certain Achthar-Related
Administrative Claims, an oral Bench Ruling issued on the same day, and a December
21, 2021 written opinion and final order enter in connection with the Order and Bench
Ruling.
Appellants include Attestor Limited and its affiliate entities including Avon
Holding I, LLC and Humana Inc. Appellees are Mallinckrodt plc and its affiliated
debtors and debtors in possession.
The parties were not previously or presently involving in mediation or other ADR
process. Based on the nature of the relief granted by the Bankruptcy Court and the
issues on appeal, the parties do not believe that mediation would be fruitful in this
appeal, and request that this matter be removed from mandatory mediation.
Appellees proposed a briefing schedule to Appellants. Thereafter, Appellants
advised Appellees they intend to seek certification for direct review by the Third Circuit.
They also take the position that this Court not set a briefing schedule while that request
in pending. See D.I. 4, Amended Notice of Appeal. Although Appellees intend to
oppose certification, they are willing to agree that this Court need not setting a briefing
schedule until certification is decided.
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.
2

Case 1:21-cv-01780-LPS Document 8 Filed 01/27/22 Page 3 of 3 PageID #: 29320

P. 72(a) and D. DEL. LR 72.1 are anticipated because the Recommendation is
consistent with the parties request.
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