Schwinn Cycling & Fitness v. Benonis

Schwinn Cycling & Fitness filed for bankruptcy, and New Schwinn purchased most of its assets, assuming only certain liabilities that expressly excluded pre-sale product-liability claims; the bankruptcy court's sale order stated New Schwinn was not Schwinn's successor in interest, and the later-confirmed liquidation plan enjoined claims against Schwinn's successors except as the plan provided. Years afterward, Benonis, a minor with no notice of Schwinn's bankruptcy or the plan's provisions, was injured on a Schwinn exercise bicycle and sued Schwinn and New Schwinn in state court on a successor-liability theory; New Schwinn filed an adversary bankruptcy proceeding seeking to enjoin that claim based on the sale order, and the bankruptcy court dismissed the adversary proceeding.