Fifth Circuit Shields Law Firm in Archdiocese Bankruptcy Suit

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The US Court of Appeals for the Fifth Circuit has ruled that bankruptcy professionals cannot be held liable for carrying out a judge's instructions to serve a court order. The appeals court affirmed a Louisiana federal court ruling, stating that the underlying claims are core matters that belong in bankruptcy court and that the defendants are entitled to derivative judicial immunity if they acted at the order of the bankruptcy court.

Why it matters

This ruling provides important legal protections for bankruptcy professionals who are tasked with carrying out court orders, even if those orders are later challenged. It helps ensure the efficient administration of bankruptcy cases by shielding key participants from liability when they are simply following the directives of the bankruptcy court.

The details

The dispute stems from the Chapter 11 bankruptcy of the Roman Catholic Archdiocese of New Orleans. The appeals court held that the underlying claims are core matters that belong in bankruptcy court, and that the defendants, which include the law firm Jones Walker, are entitled to derivative judicial immunity if they acted at the order of the bankruptcy court and in accordance with that order.

• The US Court of Appeals for the Fifth Circuit issued its ruling on February 11, 2026.