Bayoud v. Medical Center Hospital of Garland, Inc. (In Re American Development International Corp.)

FITZWATER, District Judge:

This is an appeal from an order of the bankruptcy court approving a compromise settlement agreement and enjoining certain litigation. The court must decide a question of standing to appeal, and determine whether the court below erred when it enjoined a nonbankrupt third party from engaging in nonbankruptcy litigation. The court holds that appellant has standing only to challenge the injunction. The court therefore dismisses the appeal in part. The court concludes that although the bankruptcy court acted properly in several respects, it erred by failing to consider…