Recent Posts

Professor Kenneth N. Klee on the Supreme Court's Grant of Certiorari in Wellness
Posted on 6 Aug 2014 by Kenneth Klee

Excerpt: I. Introduction The Supreme Court granted certiorari in Wellness International Network, Ltd. v. Sharif , 727 F.3d 751 (7th Cir. 2013) [an enhanced version of this opinion is available to subscribers] , cert. granted , 2014 U.S... Read More

Still Trying to Close the Stern v. Marshall Can of Worms – The Supreme Court to Grapple Again With Thorny Questions of Bankruptcy Court Jurisdiction
Posted on 5 Aug 2014 by Kelley Drye & Warren LLP

by Ben Feder Three years ago, in Stern v. Marshall , a case that arose out of the endless litigation between Anna Nicole Smith and the son of her late husband, the Supreme Court stunned the commercial legal community by reopening what many had believed... Read More

U.S. Supreme Court Addresses Authority of Federal Bankruptcy Courts to Enter Final Orders and Judgments
Posted on 28 May 2015 by Duane Morris LLP

The Wellness majority opinion is noteworthy for a number of reasons. As a practical matter, it permits this aspect of bankruptcy court practice—proceeding to final judgment in non-core matters on consent as being valid and constitutionally permissible—to... Read More

Supreme Court to Decide If Bankruptcy Lawyers Can Get Fees For Pursuing Bonus Fees
Posted on 3 Oct 2014 by Emerson Heffner

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court on Oct. 2 agreed to decide whether the U.S. Bankruptcy Code gives bankruptcy courts discretion to award lawyers their fees for successfully defending applications for enhanced attorney fees... Read More

The Ninth Circuit Holds that Bankruptcy Courts Have Authority to Recharacterize Debt as Equity
Posted on 14 May 2013 by Sheppard Mullin

On April 30, 2013, the United States Court of Appeals for the Ninth Circuit held that the bankruptcy court has authority to recharacterize as equity, rather than debt, advances of funds made purportedly as a loan to the recipient prior to its bankruptcy... Read More

Supreme Court Decides Not to Destroy the Current Bankruptcy Court System
Posted on 11 Jun 2014 by Kelley Drye & Warren LLP

by Ben Feder The U.S. Supreme Court on June 9, in Executive Benefits Insurance Agency v. Arkinson [ an enhanced version of this opinion is available to subscribers ], limited somewhat the ramifications of its landmark opinion two years ago... Read More

Supreme Court Holds That Bankruptcy Courts Can Adjudicate Stern Claims
Posted on 3 Jun 2015 by Sheppard Mullin

By Evan Zisholtz In a 6-3 ruling, the U.S. Supreme Court held that bankruptcy courts have the authority to adjudicate Stern claims so long as the litigant parties provide “knowing and voluntary consent.” This decision in Wellness International... Read More

Supreme Court Prepares for Stern v. Marshall Round 3
Posted on 4 Jul 2014 by Stephen Sather

When the Supreme Court struck down the Bankruptcy Reform Act's grant of authority to bankruptcy judges in 1982, it took it took them 29 years to return to the issue. This allowed bankruptcy law to develop and mature without constantly fretting about... Read More

Supreme Court Dodges Consent Issue in Bellingham But Signals No New Challenges to Bankruptcy Court Authority
Posted on 10 Jun 2014 by Stephen Sather

In the follow-up to Stern v. Marshall , the Supreme Court concluded that it didn’t need to answer the primary questions addressed to it, leaving open (on the surface at least) the issue of whether parties can consent to final adjudication by a bankruptcy... Read More

Fifth Circuit Provides Valuable Guidance on Bankruptcy Court Jurisdiction and Authority Post-Stern
Posted on 2 Sep 2014 by Stephen Sather

Many cases deal with debtors who fraudulently convey away their assets before filing bankruptcy. But what about the situation where the debtor is the victim of a fraudulent conveyance rather than the perpetrator? In Galaz v. Galaz (In re Galaz) , No.... Read More

Wellness International Oral Argument: Supreme Court Justices Grapple With Implications of Narrowing Bankruptcy Court Powers
Posted on 26 Jan 2015 by Kelley Drye & Warren LLP

by Ben Feder There were nearly a million bankruptcy cases filed by individuals and businesses in 2014. It is safe to say that only the tiniest fraction of such debtors have any familiarity with the Supreme Court’s decision in Stern v. Marshall... Read More

Supreme Court Decides to Maintain the Viability of the U.S. Bankruptcy Courts, But a Key Question Remains Unresolved
Posted on 29 May 2015 by Kelley Drye & Warren LLP

by Ben Feder Four years ago, in Stern v. Marshall , the Supreme Court stunned many observers by re-visiting separation of powers issues regarding the jurisdiction of the United States bankruptcy courts that most legal scholars had viewed as long settled... Read More

Professor Kenneth N. Klee on the Supreme Court's Holding in Exec. Benefits Ins. Agency v. Arkison
Posted on 21 Aug 2014 by Kenneth Klee

Professor Kenneth Klee analyzes the Supreme Court holding in Executive Benefits Insurance Agency v. Arkison that while Article III of the Constitution prohibits a bankruptcy court from entering final judgment on a bankruptcy-related claim, the relevant... Read More

Wellness Case Brings Healing for Bankruptcy Court Authority
Posted on 27 May 2015 by Stephen Sather

Resolving an issue left open by two prior decisions, the Supreme Court ruled that the right to entry of a final judgment by an Article III court, like the right to trial by jury, is a personal right which can be waived or consented away (subject to supervision... Read More