Key Takeaways From High Court's Wellness V. Sharif Ruling
Law360, New York ( May 29, 2015, 2:07 PM EDT) -- Do bankruptcy judges have the power to issue final judgments in "core" disputes if all parties consent, even without express consent? Last Tuesday, in a 6-3 ruling, the U.S. Supreme Court answered that question with a "yes." In doing so, it came to a common-sense solution to an issue raised by the court's Stern v. Marshall decision,[1] which held that bankruptcy courts lack authority under the U.S. Constitution to hear "core" claims that would not necessarily be resolved in the claims allowance process. It also addressed the question left unanswered by its decision in Executive Benefits Insurance Agency v. Arkison,[2] which interpreted Stern to allow bankruptcy courts to issue proposed findings of fact and conclusions of law for "core" claims but did not reach the issue of consent....
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