Supreme Court

Whither the Bankruptcy Courts? Will They Wither? Supreme Court Again to Consider Constitutional Limits on Bankruptcy Court Jurisdiction

08/02/13

Two years ago in Stern v Marshall, the Supreme Court surprised many observers by placing constitutional limits on the jurisdiction of the United States Bankruptcy Courts. The Court, in limiting the ability of a bankruptcy court judge to render a final judgment on a counterclaim against a party who had filed a claim against a debtor’s bankruptcy estate, re-opened separation of powers issues that most bankruptcy practitioners had thought settled since the mid-1980s. While th

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Whither the Bankruptcy Courts? Will They Wither? Supreme Court Again to Consider Constitutional Limits on Bankruptcy Court Jurisdiction

08/02/13

Two years ago in Stern v Marshall, the Supreme Court surprised many observers by placing constitutional limits on the jurisdiction of the United States Bankruptcy Courts. The Court, in limiting the ability of a bankruptcy court judge to render a final judgment on a counterclaim against a party who had filed a claim against a debtor’s bankruptcy estate, re-opened separation of powers issues that most bankruptcy practitioners had thought settled since the mid-1980s. While the holding of Stern v Marsh

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Supreme Court to Consider Whether Stern Allows Waiver or Consent

07/08/13

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Supreme Court Sets Defalcation Bar at Gross Recklessness under Section 523(a)(4)

05/14/13
In the only bankruptcy case pending before it this term, a unanimous Supreme Court has ruled that the archaic term "defalcation" used in 11 U.S.C. Sec. 523(a)(4) requires 
knowledge of, or gross recklessness in respect to, the improper nature of the relevant fiduciary behavior
complained of.    Bullock v. BankChampaign, No.
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Two Supreme Court Decisions Turn on Statutory Language

10/25/12
In two bankruptcy appeals decided this summer, the Supreme Court faithfully followed congressional intent in one case, while finding that the language used by Congress did not quite do the job in the other.    In RadLAX Gateway Hotel, LLC v. Amalgamated Bank, 132 S.Ct. 2065, 182 L.Ed.2d 967 (2012), the Court put In re Philadelphia Newspapers, LLC, 599 F.3d 298 (3rd Cir.
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Chapter 11 Once Again Safe for Undersecured Lenders - Supreme Court Affirms Right to Credit Bid in RadLax

05/29/12

 

The U.S. Supreme Court today in Radlax Gateway Hotel, LLC, et al. v. Amalgamated Bank unanimously upheld the right of secured creditors to credit bid their debt upon a sale of their collateral pursuant to a nonconsensual chapter 11 plan of reorganization.  As described in numerous prior posts on this site, the ruling resolves a split between circuits and removes a cloud of ambiguity from chapter 11 cases. 

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Supreme Court Indubitably Grapples With Credit Bidding

04/24/12

 

The Supreme Court heard arguments yesterday in RadLAX Gateway Hotel over whether the Bankruptcy Code permits a debtor in a chapter 11 case to sell encumbered assets without providing its secured lenders an opportunity to credit bid their debt. 

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