Burr Alert: Evolving Bankruptcy Jurisdiction - Ninth Circuit Rules that Bankruptcy Courts Cannot Enter Final Judgment on Fraudulent Conveyance Claims

January 24, 2013

Before the Supreme Court’s seminal ruling in Stern v. Marshall,1 bankruptcy courts regularly entered final orders in fraudulent conveyance actions and other "core"2 matters. In Stern v. Marshall, the Supreme Court ruled that despite being statutorily defined as "core" under the bankruptcy code, bankruptcy courts do not have the constitutional power to adjudicate counterclaims to proofs of claim because they are based in state law. Following the same course, the Ninth Circuit recently held in In re Bellingham Insurance Agency, Inc.,3 that a non-Article III bankruptcy judge lacks constitutional authority to enter a final judgment on a fraudulent conveyance action against a nonclaimant to a bankruptcy estate.

To read more about this topic, please see full article below:

Download PDF


Legal Disclaimer:
No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.

Featured Attorneys

send article

TESTIMONIALS

  • “He is efficient and understands me. He knows the balance between legal and business aspects.”

    -Chambers 2012

  • "Gail is extremely efficient and responsive which makes our closing process go smoothly and allows us to meet tight closing deadlines.  A reputation for having a seamless and timely closing process helps give us an edge over the competition to obtain the deal.  Gail is an excellent communicator and develops a high level of trust and respect with our team as well as with our clients."

    -Sarah S. Duggan, Seniors Housing and Healthcare Lending, Synovus Financial Corporation

  • “A great bankruptcy lawyer.”

    -Chambers 2012

  • “An excellent lawyer – the kind you want to be on your side.”

    -Chambers 2012

  • “He is very known from a corporate tax standpoint and SEC issues. He has street smarts – he’s good at helping you get things done in the correct way and advising you on which paths to go down. He answers your questions and addresses your concerns. You go to the people that you trust and have confidence in, and for me that’s Ed.”

    -Chambers 2012