Where Does a Fresh Start End?

Why ongoing post-discharge antitrust conspiracy participation should make a debtor reorganized in bankruptcy face joint and several liability.

It is well-recognized that one who joins an antitrust conspiracy is jointly and severally liable for all damages caused by the conspiracy from the inception of the conspiracy until its conclusion, irrespective of when the conspirator first joined. It is equally well-recognized that, under Chapter 11 of the Bankruptcy Code, a reorganized debtor is generally entitled to a ‘‘fresh start’’ and is therefore released from all claims that could have been asserted against it prior to the Bankruptcy Court’s confirmation of the reorganized debtor’s bankruptcy plan.