Between February 2, 1988 and November 22, 1989: Justice Department Appeals Adverse Bankruptcy Court Ruling in Inslaw Case
The Justice Department appeals an adverse ruling by the Bankruptcy Court for the District of Columbia in its dispute with Inslaw (see September 28, 1987). The main grounds of the appeal include the following claims:
The bankruptcy court judge appeared to be biased and should have recused himself. In addition, he used the bankruptcy proceedings to find culpability by the government;
Inslaw did not prove that automatic stay protection provisions had been violated;
The bankruptcy court lacked jurisdiction over Inslaw’s claim because the department had not waived its immunity from monetary judgements against the United States;
The dispute is really a contract dispute, not a bankruptcy argument, and should therefore have been heard by the Department of Transportation Board of Contract Appeals;
The court exceeded its authority in the field of damages, and no attorney fees should have been awarded.
The appeal court will find for Inslaw (see November 22, 1989), although its ruling will later be overturned (see May 7, 1991). [US Congress, 9/10/1992]