The Supreme Court on Monday clarified a prior ruling that effectively limited bankruptcy judges’ powers but left a bigger question unanswered, the Wall Street Journal reported today. The unanimous ruling in Executive Benefits Insurance Agency v. Peter H. Arkison helps clarify a 2011 ruling that called into question the power of bankruptcy judges to rule on key issues that arise in many bankruptcy cases. The 2011 case, which involved an inheritance battle between the deceased Anna Nicole Smith and the son of her deceased husband, exposed a gap between claims that the bankruptcy court is allowed to issue final judgment on and claims that it isn’t. Executive Benefits, argued in January, required the Supreme Court to confront the claims that fall into the gap. In an opinion delivered by Judge Clarence Thomas, the court said that the bankruptcy court may propose a ruling for review and final judgment by the district court. But the Court didn’t address what many saw as a crucial question: If those involved in litigation agree to let the bankruptcy court issue a final judgment on a matter it is otherwise not allowed to decide, is that consent enough? “What’s most notable about the decision is what it leaves undecided. It does not reach the constitutional questions about whether bankruptcy judges can enter judgment on the basis of litigant consent, which is now an issue that several courts of appeal have decided,” said Douglas Hallward-Driemeier, who represented Executive Benefits in the case. John Pottow, who represented Arkison, the bankruptcy trustee, said that the fact the opinion is “very close and narrow in what it’s saying” likely means the justices took different sides on the issue of consent. But he expects they’ll soon have another chance to revisit the issue. (Subscription required.)
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To read the opinion in Executive Benefits Insurance Agency v. Peter H. Arkison, please click here: http://news.abi.org/supreme-court/executive-benefits-insurance-agency-v…
Gain critical insights into the Supreme Court’s ruling in In re Bellingham at the ABI Workshop Bankruptcy Chief Judges Roundtable on June 16 at the ABI Conference Center in Alexandria, Va. Hear two panels of prominent judges weigh in and more than 50 chief judges from across the nation will attend. Join them in person or via web stream. A networking reception will be included for in-person registrants. Click here for details and registration: http://www.abiworld.org/workshops/2014/abi0616