The Supreme Court appeared open yesterday to clarifying the powers of nearly 1,000 judges in the federal court system, a group whose constitutional authority has come into question since a 2011 high-court decision involving the late Playboy playmate Anna Nicole Smith, the Wall Street Journal reported today. Depending on how the court rules in Wellness International Network Ltd. v. Sharif, argued yesterday, the bankruptcy court system could remain mired in confusion over when it has the power to offer final judgments on certain issues. By extension, the ruling could also curtail the ability of the federal magistrate system to handle some of the work of district-court judges. Bankruptcy-court judges have worked under a cloud of uncertainty since the Supreme Court’s 2011 decision in Stern v. Marshall, which found bankruptcy judges only have the authority to offer a final ruling on a dispute that “stems from the bankruptcy itself” — a phrase whose definition has generated much debate. Other issues, the court ruled, must be decided by the district court. During arguments Wednesday, the justices questioned why the court should limit the powers of the bankruptcy court when district-court judges routinely sign off on decisions reached by arbitrators — independent parties not affiliated with the court system — that litigants use as an alternative to the courts to settle disputes. To read the transcript from yesterday’s oral argument, please click here: http://www.supremecourt.gov/oral_arguments/argument_transcripts/13-935_…
For additional perspective of the issues presented in the case, listen to the ABI Podcast featuring Prof. Ralph Brubaker of the University of Illinois College of Law discussing the case.
https://drive.google.com/a/abiworld.org/file/d/0BzGxkXL_Y_oAekxHYWZYUVZE...
For case details, including petitions and amicus briefs filed in the case, be sure to visit ABI's Court Opinions page in the Newsroom.
http://news.abi.org/supreme-court/wellness-international-network-limited...
For a review of the Circuit Court split on the issue, be sure to read this ABI Journal article.
http://journal.abi.org/sites/default/files/2013/october/practice.pdf