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

  • “I work with a lot of lawyers in several states and Greg Harley is one of my favorites; he makes my job easy. He is very efficient, responsive and gets good results for us. I am very pleased.”

    -In-house counsel for a national banking institution

  • “For the past four years, my Atlantic Capital Bank deal team has engaged the legal services of Lindsey Arnold to close several large and complex bank loan transactions.  To name a few, these deals include a $10million line of credit to a linen service company, a $15million Term Loan to a prominent, market leading textile manufacturer (and a subsequent recapitalization of this loan arrangement), a $12million Term Loan facility for a major grocery store chain, a $12million Construction to Mini Perm Facility and a separate $10million for a large national beverage distribution family of businesses.  Not only was Lindsey’s service of the utmost professionalism and very quick responsiveness, but also she treated the bank’s client’s with a very high level of courteousness and integrity.  Our clients are the lifeblood of our business and it is important that our legal partners handle our relationships get off to a good start.  In addition, rarely do loans sit on a shelf…there are always changes along the way and Lindsey has been very quick to respond to our needs (driven by our clients’ needs) in terms of amendments and deal restructurings.  In addition to solid deal execution…Lindsey is a terrific resource when it comes to early stage legal guidance as we as bankers think through competitive and creative deal structures.  Lindsey has been great and we hope to steer more deals in her direction as we grow the institution.”

    -Sandy Bowen, Atlantic Capital Bank

  • “He has a good sense of helping a lender to reduce risk on business points. He talks through changes and their effect. He has really good perspective about documentation and ensuing risk.”

    -Chambers 2012

  • “He is very knowledgeable on asbestos, like a doctor when it comes to knowing the medical aspects of it…"

    -Chambers 2012

  • “I worked with Scott for 2 years on a green building project. I find his expertise in this area invaluable. Scott has a gentle yet executive demeanor, which lets him move projects forward productively while building stronger relationships.”

    -Selena Wingate