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46 Mitchell Hamline L. Rev. 1 (2019-2020)

handle is hein.journals/wmitch46 and id is 1 raw text is: 


     A  KAFKAESQUE PROCESSP FERC JURISDICTION
            DURING CHAPTER 11 BANKRUPTCY


          Richard E.B. Dornfeld*  and  Cory J. Marsolek**


          [A]  correct  understanding  of   a  matter   and   a
          misunderstanding of the same  matter are not mutually
          exclusive.


I.    IN T RO D U CT IO N .................................................................................2
II.   THE  BANKRUPTCY CODE, FEDERAL POWER ACT, AND ENERGY
      M A RK ET S.........................................................................................  4
      A.   The Bankruptcy Code ................................................................5
      B.   The Federal Power Act ..............................................................7
      C    Wholesale Energy Markets ...................................................9
III.  FILED  RATE AND  MOBILE-SIERRA   DOCTRINES............................13
      A.   Filed Rate Doctrine ..................................................................13
      B .  M obile-Sierra D octrine.............................................................16
IV.   FERC   AND THE  BANKRUPTCY   COURTS........................................18
      A.   Mirant 's Argument....................................................................19
           1. Mirant's Consideration of the Filed Rate Doctrine...........19
           2. Mirant's Rejection as Breach Framework ..................20
      B.   Mirant is Unpersuasive .............................................................24
           1. Mirant Drew Improper  Distinctions Between the Contract
              T erm s.............................................................................. 24
           2  Rejection Marks a Radical Departure from Traditional
              Contract Law.......................................................................28
V. FERC'S EXCLUSIVE JURISDICTION ................................................32
      A .  Exclusive Jurisdiction................................................................32
           1. The Federal Power Act Demands  Exclusive Jurisdiction.32
           2. Bankruptcy Code  Section 1129(a)(6) Accommodates
              FE R C .............................................................................. 35
      B .  N extW ave and Bildisco............................................................37
      C    A Congressional Fix..................................................................40
VI.   CONCLUSION ...................................................................................41




Juris Doctor, Mitchell Hamline School of Law, 2019; Bachelor of Arts, Political Science,
Hamline University, 2012.
1 Juris Doctor, Mitchell Hamline School of Law, 2018; Bachelor of Arts, Public
Administration and Political Science, Winona State University, 2015.
' FRANZ KAFKA, THE TRIAL 122 (DER PROZESS) (David Wyllie trans., Dover Thrift Editions
ed. 2009) (1925) (detailing a surreal account of an ordinary person's prosecution by a
mindless and incomprehensible legal system); see infra note 241, Mem. Decision on Action
for Declaratory & Injunctive Relief at 19; In re PG&E Corp., 603 B.R. 471, 484 (Bankr.
N.D. Cal. 2019) (Imagine the absurdity of the exclusive appeal route espoused by FERC .
... Kafka might have designed it[.J).

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