The continuing saga of the impact of the U.S. Supreme Court’s Stern v. Marshall decision
took a major turn Tuesday when the Court issued its ruling in the Wellness International Network, Limited v. Sharif case
(follow link for copy of opinion). Before considering the decision and its significance, let’s first take a look at some past hits — bankruptcy court authority-style.
The Big Picture: The Stern v. Marshall Decision
. In its 2011 summer blockbuster Stern v. Marshall
, decided by a 5-4 vote, the U.S. Supreme Court held that even though Congress designated certain state law counterclaims as “core” proceedings, Article III of the U.S. Constitution prohibits bankruptcy courts from finally adjudicating those claims.
Like a good cliffhanger, Stern v. Marshall
left a number of questions unanswered, including the following:
- Can a bankruptcy court enter a final judgment on “Stern claims” with the parties’ consent?; and