HHR Bankruptcy Report

Category Archives: Stern v. Marshall

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Does Stern v. Marshall Prohibit Non-Consensual Third Party Releases of Non-Bankruptcy Claims in Plans of Reorganization?

Posted in Delaware, Stern v. Marshall, Third party release
An increasingly common aspect of Chapter 11 plans is non-consensual third party releases, which are often a vital tool required to obtain global peace among competing constituencies whose support is often needed for a debtor to obtain confirmation of a Chapter 11 plan. However, the parameters of a bankruptcy court’s Constitutional authority to approve such… Continue Reading

The Reach of Bankruptcy Courts

Posted in Fourth Circuit, SCOTUS, Stern v. Marshall
In the beginning of the opinion he wrote for Stern v. Marshall, Chief Justice Roberts referenced Charles Dickens’ Bleak House, in which Dickens gives a grim description of a lawsuit litigated in a foggy courtroom.[1] In resolving the tumultuous Stern dispute, the Supreme Court created a new fogginess in bankruptcy courtrooms as to the exact… Continue Reading

SCOTUS Holds That Bankruptcy Courts Have Jurisdiction In Stern Claims

Posted in Article III, SCOTUS, Stern v. Marshall
In Wellness International Network v. Sharif, the Supreme Court recently weighed in again on the scope of a bankruptcy court’s jurisdiction, holding in a 6-3 opinion that Article III authorizes bankruptcy judges to exercise judicial power over Stern claims (claims that challenge a bankruptcy court’s power to enter final judgment on a case) when the… Continue Reading

Relying on Stern v. Marshall, Supreme Court Upholds Ninth Circuit Decision

Posted in Article III, Ninth Circuit, SCOTUS, Stern v. Marshall
In a unanimous opinion written by Justice Clarence Thomas, the Supreme Court today upheld a Ninth Circuit decision allowing a bankruptcy court to issue proposed findings of fact and conclusions of law on issues outside their constitutional jurisdiction for de novo review by the district court.  As previously reported here, the Supreme Court was presented… Continue Reading