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Bankruptcy Jurisdiction: From <i>Stern</i> to <i>Executive Benefits,</i> <i>Wellness International</i> and Beyond
After a reprieve of more than 20 years, the United States Supreme Court has in the past several years delved into the world of bankruptcy court jurisdiction in a big way. In 2011, the Court introduced new-found uncertainty into bankruptcy practice and procedure when it issued its landmark decision in Stern v. Marshall, which limited the constitutional authority of bankruptcy judges to issue final decisions with respect to state law counterclaims. At the time, many observers worried that the decision could lead to a dramatic overhaul of the bankruptcy court system.
With its June 9, 2014, decision in Executive Benefits Insurance Agency v. Arkison, the Court had its first opportunity to consider the implications of Stern. Ultimately, the Court's decision in Executive Benefits endorsed the new procedures that the bankruptcy courts have been following in the wake of Stern. Again, the Court left several questions open in Executive Benefits, and the decision's main lesson to bankruptcy practitioners seemed to be: “Stay tuned.” Now, with its decision of July 1, 2014, to grant certiorari in Wellness International Networks, Inc. v. Sharif, the Court has an opportunity to address questions expressly left open in Executive Benefits.
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