This case requires us to address the scope of federal bankruptcy jurisdiction over suits against non-debtor third parties, as well as the scope of a stay issued pursuant to 11 U.S.C. § 524(g)(4). In reaching these questions, we are also called upon to clarify our own jurisdiction to hear appeals from decisions of district courts reviewing bankruptcy court orders.
Appellant Pfizer Inc. (“Pfizer”) and Debtor-Appellant Quigley Co., Inc. (“Quig-ley”) (collectively “Appellants”) appeal from a judgment entered May 23, 2011 in the United States District Court for the Southern District of New York (Holwell, /.) reversing the Clarifying Order of the bankruptcy court (Bernstein, C.J.) and holding that Appellee Law Offices of Peter G. Angelos (“Angelos”) may bring suit against Pfizer for claims based on “apparent manufacturer” liability under Pennsylvania law. We determine that we have jurisdiction to hear the appeal; that the bankruptcy court had jurisdiction to issue the Clarifying Order; and that the Clarifying Order does not bar Angelos from bringing the suits in question against Pfizer. Accordingly, we affirm the district court.
BACKGROUND
Quigley was involved in the manufacture of “refractories,” which are “materials that retain their strength at high temperatures.”
In re Quigley Co., Inc.,
Important to the instant litigation are a number of insurance policies that Quigley and Pfizer share (“Insurance Policies”) as well as “the funds contained in a certain insurance trust under which Quigley and Pfizer are joint beneficiaries” (“Insurance Trust”). Original Preliminary Injunction (“Opi”) af 3 foun¿[ by the bankruptcy court, Pfizer and Quigley have used and may continue to use the policies and the trust “to satisfy settlements, judgments and defense costs related to ... Asbestos Related Claims.” Id. The Insurance Policies and Insurance Trust cover claims against Pfizer or Quigley “on a first billed, first paid basis, irrespective of amounts previously billed by or paid to Pfizer or Quigley.” Id. Quigley contemplates that “the remaining limits under the Shared Insurance Policies and the amounts contained in the Insurance Trust ... will be used to fund [its] pre-negotiated plan of reorganization.” Id.
In 2004, the bankruptcy court granted Quigley’s motion for a preliminary injunc *48 tion (the OPI), pursuant to 11 U.S.C. §§ 105(a) and 362(a), enjoining “all parties ... from taking any action in any and all pending or future Asbestos Related Claims against Pfizer during the pendency of Quigley’s chapter 11 case.” Id. at 5-6. The goal of the OPI was to prevent “depletion of the Shared Insurance Policies and the Insurance Trust assets,” which would “cause immediate and irreparable injury to Quigley’s estate and impair Quigley’s ability to implement its pre-negotiated chapter 11 plan and successfully reorganize under chapter 11.” Id. at 4. The OPI allowed a party asserting that “it holds an Asbestos Related Claim solely against Pfizer based on a product having no relation to Quigley” to obtain relief from the injunction by demonstrating to the bankruptcy court’s satisfaction that such claim truly arose from a product having no relation to Quig-ley and also that the Insurance Policies and Insurance Trust “could not be utilized to satisfy any portion of the defense costs, settlements or judgments” related to the claim and would not be “diminished or impaired by [its] prosecution.” Id. at 6.
In 2007, the bankruptcy court modified the preliminary injunction “to parallel the more limited ... injunction” contemplated by Quigley’s proposed reorganization plan.
In re Quigley Co., Inc.,
Bankruptcy No. 04-15739(SMB),
[P]ursuant to sections 105(a) and 362(a) of the Bankruptcy Code, during the pen-dency of Quigley’s chapter 11 case, all parties ... are hereby stayed, restrained and enjoined from commencing or continuing any legal action against Pfizer alleging that Pfizer is directly or indirectly liable for the conduct of, claims against, or demands on Quigley to the extent such alleged liability of Pfizer arises by reason of—
(I) Pfizer’s ownership of a financial interest in Quigley, a past or present affiliate of Quigley, or a predecessor in interest of Quigley;
(II) Pfizer’s involvement in the management of Quigley or a predecessor in interest of Quigley; or service as an officer, director or employee of Quig-ley or a related party;
(III) Pfizer’s provision of insurance to Quigley or a related party;
(IV) Pfizer’s involvement in a transaction changing the corporate structure, or in a loan or other financial transaction affecting the financial condition, of Quigley or a related party, including but not limited to—
(aa) involvement in providing financing (debt or equity), or advice to an entity involved in such a transaction; or
(bb) acquiring or selling a financial interest in an entity as part of such a transaction.
API at 2-3. The order further provided that “nothing contained in this order shall prohibit any party in interest from seeking *49 relief from the automatic stay of section 362(a) of the Bankruptcy Code or the terms of this order by filing an appropriate motion with the Court.” Id. at 6.
Beginning in 1999, Angelos brought multiple suits (the “Angelos suits”) in Pennsylvania against Pfizer on behalf of plaintiffs alleging they were injured by exposure to asbestos. CO at *2. At least some of these suits sought to hold Pfizer liable in connection with products containing asbestos and manufactured by Quigley under an “apparent manufacturer” theory of liability as set out in Restatement (Second) of Torts § 400.
Id.
The Angelos suits alleged that Pfizer’s logo appeared on Quigley’s advertising and the packages of Quigley’s asbestos-containing products.
Id.
at *5. Under § 400, “[o]ne who puts out as his own product a chattel manufactured by another is subject to the same liability as though he were its manufacturer.”
Forry v. Gulf Oil Corp.,
In its Clarifying Order, the bankruptcy court began by noting that all the actions upon which Pfizer’s liability is predicated in the Angelos suits were actually undertaken by Quigley, and that consequently the relevant inquiry for determining whether the API enjoins continuance of these suits is whether “Pfizer’s liability ‘arises by reason of its ownership or management of Quigley,” as the API, mirroring § 524(g)(4)(A)(ii), provides. Id. at *5. It then observed that the phrase “arises by reason of’ is ambiguous. On the one hand, the liability Angelos seeks to impose on Pfizer “arises by reason of the use of its name and logo by Quigley,” not its ownership or management of Quigley. Id. (internal quotation marks omitted). On the other hand, “[b]ut for Pfizer’s ownership and/or management of Quigley, its name and logo would never have been used” on Quigley products. Id.
The bankruptcy court concluded that the API does cover § 400 liability. It reasoned that the API plainly enjoins claims premised on successor and alter ego liability, and that both of these types of liability will often involve conduct by the third-party defendant that is more wrongful than “[t]he use of the Pfizer name and logo.” Id. at *6. The bankruptcy court also noted the similarity between respon-deat superior liability and liability imposed under § 400, since it concluded that both forms of liability are considered “derivative” under Pennsylvania law. Id. Suits alleging respondeat superior liability are clearly covered by the API so, the bankruptcy court reasoned, § 400 suits should be as well. Id. 1 The bankruptcy court determined that the API reaches the Angelos suits, and therefore it directed *50 Angelos and the plaintiffs in these suits to cease prosecution of them. Id. at *8.
Angelos appealed the CO to the United States District Court for the Southern District of New York. The district court did not quarrel with the bankruptcy court’s determination that the conduct for which Angelos seeks to impose liability on Pfizer was Quigley’s. District Court Opinion at 203-04. However, the district court disagreed with the bankruptcy court that the fact that Quigley would not have marked its products with Pfizer’s name and logo but for Pfizer’s ownership of Quigley leads to the conclusion that the API covers the Angelos suits. Instead, the district court viewed the relevant inquiry as whether the liability Angelos seeks to impose on Pfizer arises,
as a legal matter,
from its ownership of Quigley.
Id.
at 204-05. The district court found support for this position in our decision in
Manville III,
which it read as requiring, in cases interpreting the scope of an 11 U.S.C. § 524(g) injunction, “a legal analysis ... under state law to determine whether [a defendant] had ‘an independent legal duty in dealing with the plaintiffs, notwithstanding the factual background in which [that] duty arose.’”
Id.
at 205 (quoting
Manville III,
The district court entered judgment for Angelos on May 23, 2011. Quigley moved for reconsideration, and the district court denied the motion. 2 This appeal followed.
DISCUSSION
This Court’s Jurisdiction
The parties do not dispute our jurisdiction to hear this appeal. Nevertheless, “[w]e have an independent obligation to consider the presence or absence of subject matter jurisdiction
sua sponte.” Coll. Standard Magazine v. Student Ass’n of State Univ. of N.Y. at Albany,
“The standards for determining finality in bankruptcy differ from those applicable to ordinary civil litigation.”
In re Sonnax Indus., Inc.,
Here, the Clarifying Order that is the subject of this appeal did not grant or deny relief from a stay; rather, it clarified that a stay applied to a particular party. But in
Lomas,
we stated that whether a bankruptcy court order “involve[s] an appeal from a denial of a motion to lift the automatic stay ... [or] involves an appeal from an order holding ... that the automatic stay applies to the action” is not “a distinction of consequence to the finality issue.”
Lomas,
The Bankruptcy Court’s Jurisdiction to Issue the Clarifying Order
While the parties do not dispute our jurisdiction to hear this appeal, they do dispute the bankruptcy court’s jurisdiction to enjoin the Angelos suits from going forward.
Amicus
Hissey suggests that the Supreme Court’s recent opinion in
Stern v. Marshall,
— U.S. -,
a. Article III and the Bankruptcy Court’s Jurisdiction
Stem involved a dispute between the estates of Vickie Lynn Marshall (popularly known as Anna Nicole Smith and herein referred to as ‘Vickie”), the wife of the late J. Howard Marshall, and Pierce Marshall (“Pierce”), J. Howard Marshall’s son. Id. at 2601. After the death of her husband, Vickie filed for bankruptcy in federal court. Pierce filed a proof of claim in that proceeding, charging that Vickie had defamed him in connection with a suit she had previously filed alleging that her husband intended to provide for her through a trust, and that Pierce had tortiously interfered with that gift. Upon Pierce’s filing of a proof of claim in the bankruptcy proceeding, Vickie responded with a counterclaim for the alleged tortious interference. The bankruptcy court issued a final judgment in favor of Vickie on her counterclaim, see id. at 2601, and Pierce then challenged the bankruptcy court’s jurisdiction to do so.
The Supreme Court held that the bankruptcy court’s entry of final judgment on Vickie’s counterclaim violated Article III of the Constitution. 4 Id. at 2608. “Article III,” the Court reasoned, “could neither serve its purpose in the system of checks and balances nor preserve the integrity of judicial decisionmaking if the other branches of the Federal Government could confer the Government’s ‘judicial Power’ on entities outside Article III.” Id. at 2609. The Court concluded that the entry of final judgment on Vickie’s counterclaim “involve[d] the most prototypical exercise of judicial power: the entry of a final, binding judgment by a court with broad substantive jurisdiction, on a common law cause of action, when the action neither derive[d] from nor depend[ed] upon any agency regulatory regime.” Id. at 2615 (emphasis omitted). Accordingly, the counterclaim had to be decided by an Article III court.
Whatever
Stem’s
precise contours (a matter we need not reach) we conclude that
Stem
has no application to the present case. The Supreme Court in
Stem
indicated that its holding was a narrow one.
See id.
at 2620(“We conclude today that Congress, in one isolated respect, exceeded [Article Ill’s] limitation in the Bankruptcy Act of 1984.”);
see also In re Salander O’Reilly Galleries,
*53 b. Statutory Jurisdiction
Statutory jurisdiction is a separate matter. 28 U.S.C. § 1334 provides for original jurisdiction in the district courts for “all cases under title 11” and “all civil proceedings arising under title 11, or arising in or related to cases under title 11.” 28 U.S.C. § 157(a), in turn, provides that district courts may refer all cases or proceedings over which they have jurisdiction under 28 U.S.C. § 1334(a) or (b) to the bankruptcy courts. The parties do not dispute that, if the district court had bankruptcy jurisdiction because the Angelos suits “aris[e] under title 11, or aris[e] in or [are] related to” the Quigley bankruptcy, the bankruptcy court’s exercise of jurisdiction was proper. 5
Bankruptcy jurisdiction is appropriate over “third-party non-debtor claims that directly affect the
res
of the bankruptcy estate.”
Manville III,
Angelos objects that the impact of the Angelos suits on Quigley’s bankruptcy es
*54
tate is too attenuated to confer bankruptcy jurisdiction. We disagree. The bankruptcy court found in 2004, and Angelos does not contest, that the Insurance Policies and Insurance Trust “may be utilized by Pfizer and Quigley to satisfy settlements, judgments or defense costs related to Asbestos Related Claims against either of them, on a first billed, first paid basis, irrespective of amounts previously billed by or paid to Pfizer or Quigley.”
7
OPI at 10. The potential impact of the Angelos suits on the bankruptcy estate is thus nothing but direct: at Pfizer’s election, any judgments, settlements, or litigation expenses arising out of the Angelos suits will be paid by Quigley’s estate. This case is thus different from
Pacor, Inc. v. Higgins,
Angelos also objects that, under this Court’s decision in Manville III, the bankruptcy court did not have jurisdiction to enjoin the Angelos suits because they allege violations of an independent legal duty owed by Pfizer to the plaintiffs, rather than claims that are “derivative” under Pennsylvania state law. Again, we disagree. Because Angelos’s mistake as to the nature of the jurisdictional inquiry under 28 U.S.C. § 1334(a) and (b) stems from a misunderstanding of our case law’s treatment of derivative liability in the context of bankruptcy jurisdiction, however, we *55 discuss our previous cases addressing this subject in some detail.
Our first case to address the role of derivative liability in the context of bankruptcy jurisdiction was
MacArthur Co. v. Johns-Manville Corp.,
MacArthur does not hold that third-party suits that affect the res of the bankrupt estate but that are nonetheless not derivative, in some sense, of the debtor’s rights and liabilities fall outside federal bankruptcy jurisdiction. (Indeed, language to this effect would have been dicta, as MacArthur found jurisdiction proper. Id. at 93.) The primary thrust of the opinion in MacArthur focuses on the fact that the suits in question would impact the res of the bankruptcy estate. See id. at 91-92. We viewed the similarity of MacArthur’s claims to direct actions against an insurer (over which the Fifth Circuit in Davis had already approved bankruptcy jurisdiction) as relevant to whether MacArthur’s claims affected the bankruptcy estate, not as an independent requirement for the exercise of jurisdiction. See id. at 92-93 (“[MacArthur] seek[s] to collect out of the proceeds of Manville’s insurance policies on the basis of Manville’s conduct. [MacArthur’s] claims are inseparable from Manville’s own insurance coverage and are consequently well within the Bankruptcy Court’s jurisdiction over Manville’s assets.”). The fact that MacArthur’s rights under the vendor endorsements were derivative of Manville’s — as opposed to non-derivative rights under separate insurance policies — indicated in that case that any proceeds Manville’s insurers might owe MacArthur would come from Manville’s insurance policies.
*56
Our next case to consider the role of derivative liability in the context of bankruptcy jurisdiction was
Manville III.
In that case, plaintiffs sought to bring suits against Travelers, Manville’s primary insurer for a period of years.
Manville III,
We held that bankruptcy jurisdiction did not exist to enjoin the suits in question. We began by distinguishing MacArthur and the Fifth Circuit’s decision in Davis, noting that the plaintiffs’ “claims seek damages from Travelers that are unrelated to the policy proceeds, quite unlike the claims in MacArthur and Davis where plaintiffs sought indemnification or compensation for the tortious wrongs of Man-ville to be paid out of the proceeds of Manville’s insurance policies.” Id. at 63. We also noted that, unlike the claims in MacArthur, the claims at issue were not premised on Manville’s conduct. Id. We faulted the courts below for failing to examine whether the suits in question sought to impose liability on Travelers on the basis of its “independent legal duty in its dealing with [the] plaintiffs,” id., noting that such an examination would have revealed that, while some of the claims were “premised on a statute that provides a direct action against an insurer when the insured is insolvent,” the “vast majority” were claims which sought “to recover directly from [the] debtor’s insurer for the insurer’s own independent wrongdoing,” “ma[d]e no claim against an asset of the estate,” and whose litigation “[did not] affect the estate.” Id. at 64-65. Accordingly, we concluded that the bankruptcy court had no jurisdiction “to enjoin claims against Travelers that were predicated, as a matter of state law, on Travelers’ own alleged misconduct and were unrelated to Manville’s insurance policy proceeds and the res of the Manville estate.” Id. at 68.
Manville III
did not work a change in our jurisprudence. After
Manville III,
as before it, “a bankruptcy court ... has jurisdiction to enjoin third-party non-debt- or claims that directly affect the
res
of the bankruptcy estate.”
Manville III,
Our more recent decision in
Manville IV
made more explicit the fact that in
Man-ville III
derivative liability was discussed not as an independent jurisdictional requirement but as a factor demonstrating, in the circumstances of that litigation, that the suits in question would have an effect on the bankruptcy
res.
We described our holding in
Manville III
as indicating “that the bankruptcy court’s
in rem
jurisdiction was insufficient to allow it to enjoin ... [ajctions based on state-law theories that [sought] to impose liability on Travelers as a separate entity rather than on the policies that it issued to Manville.”
Manville IV,
It thus appears from our case law that, while we have treated whether a suit seeks to impose derivative liability as a helpful way to assess whether it has the potential to affect the bankruptcy
res,
the touchstone for bankruptcy jurisdiction remains “whether its outcome might have any ‘conceivable effect’ on the bankruptcy estate.”
Cuyahoga,
The Scope of the API
Having concluded both that we have jurisdiction to hear this appeal and that the bankruptcy court had jurisdiction to enjoin the Angelos suits, we next address whether the Angelos suits fall within the scope of the API and were, for that reason, actually enjoined. As both parties acknowledge, we typically accord a bankruptcy court’s interpretation of its own order “customary appellate deference.”
In re Casse,
As already noted, § 524(g) was enacted to address the unique problem posed by asbestos-related bankruptcies. Because symptoms of asbestos-related illness may not manifest until decades after exposure, potential claimants against an asbestos manufacturer’s bankruptcy estate may not know of their claims until years after the estate has been depleted by other claimants whose symptoms became apparent *59 earlier. Section 524(g) addresses this difficulty by authorizing a bankruptcy court to enter, along with confirmation of a reorganization plan, an injunction “channeling” certain classes of claims to a trust set up in accordance with the reorganization plan, which trust will then make payments to both present and future claimants. See 11 U.S.C. § 524(g)(1) — (2). 16
To give bankruptcy courts power to channel all appropriate claims to the trust — and to provide an incentive for parent or affiliated companies of an entity undergoing asbestos-related bankruptcy to contribute to the trust— § 524(g) contains a provision allowing the bankruptcy court to enter an injunction barring certain actions brought against non-debtor third parties. Section 524(g)(4)(A)(ii) provides as follows:
[A]n injunction [under 11 U.S.C. § 524(g) ] may bar any action directed against a third party who is identifiable from the terms of such injunction (by name or as part of an identifiable group) and is alleged to be directly or indirectly liable for the conduct of, claims against, or demands on the debtor to the extent such alleged liability of such third party arises by reason of—
(I) the third party’s ownership of a financial interest in the debtor, a past or present affiliate of the debtor, or a predecessor in interest of the debtor;
(II) the third party’s involvement in the management of the debtor or a predecessor in interest of the debtor, or service as an officer, director or employee of the debtor or a related party;
(III) the third party’s provision of insurance to the debtor or a related party; or
(IV) the third party’s involvement in a transaction changing the corporate structure, or in a loan or other financial transaction affecting the financial condition, of the debtor or a related party, including but not limited to—
(aa) involvement in providing financing (debt or equity), or advice to an entity involved in such a transaction; or
(bb) acquiring or selling a financial interest in an entity as part of such a transaction.
An injunction under the statute may thus properly bar an action against a third party only when that party is alleged to be liable “for the conduct of, claims against, or demands on” the debtor and to the extent that such liability arises “by reason of’ one of the four relationships between the third party and the debtor enumerated in subsections (I) through (IV). 17
The parties’ principal disagreement focuses on the meaning of the phrase “by reason of.” Stated simply, Pfizer argues that liability arises “by reason of’ any of the four enumerated relationships when that relationship is a “but for,” factual cause of the liability in question. Here, because Quigley, as a factual matter, would not have applied the Pfizer name and logo to its asbestos-containing products absent Pfizer’s ownership interest in Quigley, Pfizer contends that its liability arises “by reason of’ that ownership interest and that the Angelos suits were properly enjoined. Angelos, on the other hand, argues that, to fit within the parameters of 11 U.S.C. *60 § 524(g), the liability sought to be imposed must arise as a legal consequence of one of the four enumerated relationships (or, stated differently, that the relationship, in light of the debtor’s conduct or the claims asserted against it, must be a legal cause of or a legally relevant factor to the third party’s alleged liability). The API is inapplicable to the Angelos suits, according to Angelos, because Pfizer’s liability as an “apparent manufacturer” under § 400 hinges on the presence of Pfizer’s name and logo on Quigley’s products, while the fact of Pfizer’s ownership of Quigley is legally irrelevant.
We agree with Angelos. Section 524(g) does not explicitly indicate whether the phrase “by reason of’ refers to legal or factual causation, or some combination of the two. We conclude, however, that several factors favor the interpretation proffered by the appellee.
In the first place, the statute lists four relationships between a third party and a debtor that, when resulting in alleged liability on the third party’s part for the conduct of or claims against the debtor, may render an injunction appropriate. As a matter of background legal principle, we deem it significant that each of these four relationships is of a sort that could,
legally,
have given rise to
actual
liability in appropriate circumstances prior to § 524(g)’s enactment. For instance, 11 U.S.C. § 524(g)(4)(A)(ii)(I) provides a bankruptcy court with the power to enjoin an action that arises “by reason of’ the third party’s “ownership of a financial interest in the debtor, a past or present affiliate of the debtor, or a predecessor in interest of the debtor.” This subsection thus authorizes a bankruptcy court to bar actions seeking to impose liability on a third party in circumstances in which a plaintiff might have alleged that the third party was responsible for claims against the debtor on a “piercing the corporate veil” theory.
18
See, e.g., Freeman v. Complex Computing Co.,
Each of the four relationships enumerated in subsections (I) through (IV), then, is a relationship between one party and another that, in appropriate circumstances, has commonly given rise to the liability of the one party for the conduct of or claims or demands against the other, long before § 524(g) came into being. This circumstance does not conclusively establish that § 524(g)(4)(A)(ii)’s channeling authority is limited to situations in which the third party’s relationship with the debtor is legally relevant to its purported liability, so that a bankruptcy court is not authorized to bar litigation when the relationship is merely a “but for” cause of the alleged liability. The background legal context against which § 524(g)(4)(A)(ii) was enacted, however, suggests strongly that it was this sort of liability that Congress had in mind in enacting the provision. Were Pfizer’s view of the matter correct, we would find it surprising that each enumerated relationship in § 524(g)(4)(A)(ii) just happens to correspond to a previously-recognized relationship that may, in appropriate circumstances, give rise to the legal liability of one party for the conduct of or claims against another.
Even brief consideration of another part of § 524(g) in which the “by reason of’ language is employed renders definite our conclusion in favor of Angelos’s construction.
See United States v. Cunningham,
No entity that pursuant to [a] plan [under § 524(g) ] or thereafter becomes a direct or indirect transferee of, or successor to any assets of, a debtor or trust that is the subject of the injunction shall be liable with respect to any claim or demand made against such entity by reason of its becoming such a transferee or successor.
Consider this provision’s application to a case in which a company first succeeds to significant assets of a bankrupt asbestos concern pursuant to, and after confirmation of, a § 524(g) reorganization plan and thereafter hires new employees to administer these assets, engaging in age discrimination in the hiring process. On Pfizer’s reading of the phrase “by reason of,” such a company could plead 11 U.S.C. § 524(g) as a barrier to liability, since its discrimination would not have occurred, as a factual matter, but for the company’s succession to the assets of the bankrupt estate. Angelos’s construction of “by reason of,” in contrast, would not foreclose liability on a discrimination suit, because even if the discrimination would not have taken place but for the company’s acquisition of the bankrupt’s assets, any subsequent age discrimination claim would not be levied “by reason of’ the company’s acquisition of these assets, but “by reason of’ the alleged discrimination itself.
We are confident that the Angelos reading of the statutory language at issue here is the correct one. Section 524(g) is designed to “facilitat[e] the reorganization and rehabilitation of the debtor as an economically viable entity,” as well as “make[] it possible for future asbestos claimants to obtain substantially similar recoveries as current claimants.”
In re Combustion Eng’g, Inc.,
We conclude that the phrase “by reason of,” as employed in 11 U.S.C. § 524(g)(4)(A)(ii), requires that the alleged liability of a third party for the conduct of or claims against the debtor arises, in the circumstances, as a legal consequence of one of the four relationships between the debtor and the third party enumerated in subsections (I) through (IV)- Pfizer does not argue that its ownership of Quigley is pertinent in any legal sense to the claims asserted in the Angelos suits. Indeed, as the district court very aptly noted, Pfizer’s ownership interest in Quigley is “legally irrelevant” to the Angelos suits’ § 400 claims. District Court Opinion at 204. Consequently, the API, modeled as it is on 11 U.S.C. § 524(g)(4)(A)(ii), does not enjoin the suits at issue.
Finally, although not necessary to its holding,
Manville III
briefly addressed 11 U.S.C. § 524(g)(4)(A)(ii)’s requirement that any injunctions imposed under § 524(g) may only bar actions against third parties “alleged to be directly or indirectly liable for the conduct of, claims against, or demands on the debtor,” suggesting that an injunction is available only in “situations where ... a third party has derivative liability for the claims against the debtor.”
CONCLUSION
For the foregoing reasons, the judgment of the District Court is AFFIRMED.
Notes
. Additionally, the bankruptcy court discussed our then-recent decision in
In re Johns-Manville Corp.,
. After entry of final judgment but before the decision on the motion to reconsider, Hissey Kientz L.L.P. and Hissey, Kientz & Herron P.L.L.C. (collectively "Hissey”) gave notice of their intention to intervene, and moved to intervene on June 24, the same day the district court issued its decision denying Quig-ley's motion to reconsider. The district court granted the motion to intervene on June 27. On appeal, Appellants challenge the district court's grant of the motion to intervene, arguing that Hissey does not have standing. Because Hissey conceded at oral argument that its purposes in seeking to intervene would be vindicated if we were to treat it as an amicus curiae, we do so, and do not reach the standing question. The Clerk of Court is directed to amend the caption accordingly.
. Section 158(d) also provides for jurisdiction for courts of appeals to hear appeals on the basis of certification. See 28 U.S.C. § 158(d)(2). Because the instant appeal has not been certified, this provision is not relevant here.
. Article III commands that "[t]he judicial Power of the United States, shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish.” Art. Ill, § 1. The Article further provides for the judges of these courts to hold their offices during good behavior, without diminution of salary. Id.
. In the OPI, the bankruptcy court found that the proceeding before it was a “core proceeding” within the terms of 28 U.S.C. § 157(b)(2), thus enabling it to issue orders rather than merely to make proposed findings of fact and conclusions of law,
see
28 U.S.C. § 157(b)(1), (c)(1). Angelos does not question this conclusion before us, or even cite 28 U.S.C. § 157 in its brief, and has thereby waived any objection to the bankruptcy court's determination.
See, e.g., Norton v. Sam’s Club,
. We have also expressed the test for bankruptcy jurisdiction as an inquiry whether the third-party action has “a significant connection” with the bankruptcy case in question.
In re Turner,
. This case thus differs from
In re Combustion Engineering, Inc.,
.
See also In re W.R. Grace & Co.,
.We are unconvinced by Angelos's argument that the Angelos suits would not impact Quig-ley's estate because Pfizer would have to make a claim against the Insurance Policies or the Insurance Trust before any effect on Quigley’s estate would occur. The parties entitled to contractual indemnity in A.H. Robins and In re Brentano’s could presumably also have declined to insist on their contractual rights.
. A “direct action” in the insurance context is a suit, statutorily authorized in some states, in which “[t]he injured party steps into the shoes of the tortfeasor and can assert any right of the tortfeasor-insured against the insurance company.”
Continental Ins. Co. v. Atlantic Cas. Ins. Co.,
. The suits were thus not traditional “direct actions.”
See Manville III,
. The Supreme Court reversed this Court’s decision in
Manville III
on the ground that given "the finality of the Bankruptcy Court's [1986] orders following the conclusion of direct review,” res judicata barred the plaintiffs’ challenge, two decades later, to the bankruptcy court's jurisdiction to enter the orders in 1986.
Travelers Indem. Co. v. Bailey,
. The Supreme Court, while noting the widespread approval of the "conceivable effect” test among the circuits, has not reached the question of whether to adopt this formulation as its own.
See Celotex,
. By contrast, we are aware of no sister circuit cases finding a lack of bankruptcy subject matter jurisdiction where the third-party action in question could affect the bankrupt estate but was not derivative of the rights and obligations of the debtor.
. In neither circumstance, of course, is it necessarily the case that an injunction staying litigation during the course of bankruptcy proceedings is appropriate. A bankruptcy court’s jurisdiction to enjoin an action does not require it to exercise that jurisdiction to enjoin a suit in a particular instance.
. We recognize that the API was not entered under the bankruptcy court’s authority conferred in 11 U.S.C. § 524(g), but rather pursuant to 11 U.S.C. §§ 105(a) and 362(a). API at 2. However, Angelos does not contest the bankruptcy court’s authority under these provisions to issue the API. Accordingly, we examine only whether the API’s terms encompass the Angelos suits.
. The requirements for a § 524(g) plan and trust are extensive but are relevant here only as described below.
. Given our conclusion that the Angelos suits do not "arise by reason of” the enumerated grounds, we need not address whether the suits seek to hold Pfizer directly or indirectly liable for the conduct of Quigley.
. A third party’s "involvement in the management of the debtor or a predecessor in interest of the debtor, or service as an officer, director or employee of the debtor or a related party,” as provided in § 524(g)(4)(A)(ii)(II), could also give rise to liability on this basis.