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Lawyers React To Justices’ Ruling On Bankruptcy Court Power

May 27, 2015


Law360, New York (May 26, 2015, 8:02 PM ET) — On Tuesday, the Supreme Court overturned a Seventh Circuit decision and held that bankruptcy courts have the authority to make final decisions on certain legal claims that help liquidate a debtor or adjudicate a bankruptcy proceeding. Here, attorneys tell Law360 why the decision in Wellness International Network Ltd. v. Sharif is significant.

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Joseph O’Neil, Montgomery McCracken Walker & Rhoads LLP

“The Supreme Court did what was necessary to preserve the bankruptcy court’s authority. It looked to precedent and found that litigant consent has been a hallmark of our judicial system from day one. Consent to bankruptcy court jurisdiction to resolve issues that may not always fit neatly within the constitutional framework of Article III is pragmatic. The court’s recognition that consent may be implied also compels litigants to take action if they have a basis to opt out of bankruptcy court and prevents them from raising jurisdictional issues later if a potential outcome does not look favorable to them.”

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–Editing Emily Kokoll.

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