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US Supreme Court Bankruptcy Watch: Readying for Stern v. Marshall -- A Bombshell or a Dud?

Three or four more opinion days before the United States Supreme Court's term closes. Sixteen opinions have yet to be delivered. But if a lifelong, diehard, Bronx-born Yankee fan, Justice Sotomayor (who some say saved baseball), is willing to sport a CUBS jersey while throwing out the ceremonial...

Supreme Court Finds Core Counterclaim Jurisdiction Unconstitutional, Sends Vickie Lynn Marshall Estate Packing

After fifteen years of litigation, two trips to the Supreme Court and the deaths of both of the original antagonists, the Supreme Court decided Stern v. Marshall , 2011 U.S. LEXIS 4791 (Jun. 23, 2011). While Vickie Lynn Marshall, better known as Anna Nicole Smith, made a splash during her lifetime...

US Supreme Court's Bombshell Opinion in Stern v. Marshall Draws the Line Against Incremental Erosion of Article III Judicial Power

In my last post , I posited whether the Court's decision in Stern v. Marshall would be a bombshell or a dud. It certainly was no dud. And after reading the 5-4 opinion, I'd say that it's a bombshell in several respects, both from a bankruptcy and constitutional perspective. Here's...

Cadwalader Clients & Friends Memo: Stern v. Marshall: How Big Is It?

On June 23, 2011, the Supreme Court ruled 5-4, in an opinion by Chief Justice Roberts, that a Bankruptcy Judge lacked constitutional authority to issue a final ruling on state law counterclaims by a debtor against a claimant. This is the latest round of a well-known case involving the estate of former...

Professor Kenneth Klee and Henry Sommer Discuss Stern v. Marshall

On this edition, Henry Sommer, co-editor in chief of Collier on Bankruptcy and the LexisNexis Matthew Bender Collier line of bankruptcy publications and Kenneth Klee, Professor at UCLA School of Law, discuss the U.S. Supreme Court's June 23, 2011 opinion in Stern v. Marshall. Copyright© 2010...

Fifth Circuit to Consider Impact of Stern v. Marshall on U.S. Magistrates

While the paparazzi followed every move of Anna Nicole Smith during her tragically shortened life, those of us of the legal paparazzi now stalk every new development in the case which bears her legal name, Stern v. Marshall . Some commentators have asked whether the newly emphasized limitations on...

National Conference of Bankruptcy Judges--10/14/11--Does the Bankruptcy World Need Another Talk on Stern v. Marshall?

Prof. Ralph Brubaker and Prof. Ken Klee spoke on "Not Again! Will Bankruptcy Courts Survive the Supreme Court's Second Look At Stern v. Marshall?" However, their panel could have been titled, "Does the Bankruptcy World Need Yet Another Talk on Stern v. Marshall?" Fortunately...

Fifth Circuit Rules That Stern v. Marshall Does Not Invalidate Action By Magistrates

In a ruling that could shed some light (but not very much) on the authority of bankruptcy judges, the Fifth Circuit has ruled that a magistrate's ruling in an insurance coverage dispute did not run afoul of the Supreme Court ruling in Stern v. Marshall , ___ U.S. ___, 131 S.Ct. 2594 (2011). ...

Circuits Split Over Impact of Stern on Counterclaims

Following last year's Stern v. Marshall bombshell, cases are slowly trickling up to the Court of Appeals level. After I wrote about a recent Fifth Circuit opinion which held that the jurisdiction of U.S. Magistrate Judges was not invalidated, a commenter pointed out a recent Seventh Circuit decision...

Stern v. Marshall: The Texas Cases

This is a paper that I did for the Austin Bar Association summarizing the Texas cases applying Stern v. Marshall to date. Please note that where the holding is indented, I am directly quoting the opinion. I also used the following key for highlighting certain decisions: *--If you only read a few...

Professor Kenneth N. Klee on the Aftermath of Stern v. Marshall: An Analysis of the Court's Ruling and a Discussion of Developing Case Law

Note: Case and statute links below are accessible by lexis.com subscribers Prof. Kenneth N. Klee examines the developing case law in the aftermath of the Supreme Court ruling in Stern v. Marshall, in which the Court held that 28 U.S.C. § 157 (b)(2)(C) is unconstitutional because it gives...

James M. Lawniczak on Whether Parties Can Consent to a Bankruptcy Judge Entering a Final Order

This Emerging Issues Analysis examines whether, post-Stern v. Marshall, parties can consent to a bankruptcy court's entry of final judgment in a related matter. The circuits are split on the issue, with the Sixth Circuit denying the bankruptcy court such power, but the Ninth Circuit recently...

Taking Advantage of Stern v. Marshall in a Ponzi Scheme Case

Clawback actions in Ponzi scheme cases may be a dime a dozen these days, but the issues now raised by the Supreme Court decision in Stern v. Marshall , __ U.S. __, 131 S. Ct. 2594 (2011), can become quite costly for those involved. In Stern v. Marshall , the Supreme Court held that bankruptcy judges...

Madoff Trustee Meets Stern v. Marshall

In connection with the SIPA proceeding of Bernard L. Madoff Investment Securities, LLC, the district court issued its ruling on whether the U.S. Supreme Court decision in Stern v. Marshall , 131 S. Ct. 2594, 180 L. Ed. 2d 475 (2011), prohibits the bankruptcy court from issuing a final ruling on a...

Fifth Circuit Affirms Ruling That "The Loan Has Been Paid!!!;" Rejects Stern and Jurisdictional Defenses

The case of a creditor who did not want to acknowledge that its debt had really and truly been paid received little sympathy from the Fifth Circuit which rejected a panoply of defenses and affirmed the Bankruptcy Court ruling that "The Senior Loan Has Been PAID!!!" Fire Eagle, LLC v. Bischoff...

Supreme Court to Consider Whether Stern Allows Waiver or Consent

The Supreme Court has set the stage to flesh out the practical impact of Stern v. Marshall [ an enhanced version of this opinion is available to lexis.com subscribers ]. On June 24, 2013, the Court granted the petition for cert filed by the defendant in a fraudulent conveyance suit brought by a trustee...

Fifth Circuit Nixes Consent in Stern Cases

A failed bid to reap a Beanie Baby bonanza, which resulted in a fifteen year legal odyssey for a chapter 13 debtor and his attorneys, will live on a while longer as a result of the Fifth Circuit’s recent interpretation of Stern v. Marshall . Unlike the adorable plush toys giving rise to the dispute...

Wellness International Oral Argument: Supreme Court Justices Grapple With Implications of Narrowing Bankruptcy Court Powers

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 nearly four years ago [ an enhanced version of this...