The Supreme Court Keeps Its “Stern” Promise Not To Change Bankruptcy Court Jurisdiction

    View Authors August 2014

    The bankruptcy bench and bar breathed a sigh of relief when the Supreme Court issued Executive Benefits Insurance Agency v. Arkison (In re Bellingham Insurance Agency, Inc.), No. 12-1200 (June 9, 2014). Its prior decision in Stern v. Marshall, 131 S. Ct. 2594 (2011), held that bankruptcy courts do not have jurisdiction to enter final judgments on fraudulent conveyance claims against non-creditors. The Supreme Court kept its promise and explicitly approved of the practice of using findings of fact and conclusions of law to eliminate jurisdictional problems. This article from the CBA Report, by Squire Patton Boggs partner Stephen D. Lerner and senior associate Colter Paulson, discusses the implications of that the decision.

    Article reprinted with permission of the publisher.