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This section contains the nature of the case and procedural background.

Bonner (D) owned a shopping mall and defaulted on the payment of his real estate taxes on the mall. The mortgage allowed for foreclosure under that circumstance and the mortgage holder Bancorp (P) filed such an action. D filed for Bankruptcy under Chapter 11. While the case wound its way through the judicial system, both parties stipulated to a consensual plan of reorganization, which received approval of the Bankruptcy Court. P wanted the Court of Appeals to vacate its judgment about the new value exception to the absolute priority rule. D opposed that motion. Bancorp lost on appeal, and while the case was pending before the Supreme Court, the parties consented to a revised plan which was approved by the Bankruptcy Court. This settlement made the case moot before the Supreme Court, but P still sought a vacatur of the judgment rendered by the Court of Appeals. The case went for review before the Supreme Court.

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