Despite the Supreme Court’s recent decisions in Executive Benefits Insurance Agency v. Arkinson, 573 U.S. ___ (2014) (Arkinson) and Stern v. Marshall, 564 U. S. ___ (2011) (Stern),which dealt with the division of authority between bankruptcy courts and Article III courts, the question of whether a party could consent to a bankruptcy court’s final adjudication of so-called “Stern claims” remained an open issue. No longer. Recently, in Wellness International Network, Ltd. v. Sharif, ___ U.S.

The Issue and Background

On Sunday, June 14, 2015, Colt Holding Company LLC and 9 affiliates, including Colt Defense, LLC filed voluntary chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware.  The case is docketed as case no. 15-11296 and has been assigned to The Honorable Laurie Selber Silverstein.

On May 21, 2015, the United States Court of Appeals for the Third Circuit (the "Third Circuit") held that in rare instances a bankruptcy court may approve a "structured dismissal"- that is, a dismissal "that winds up the bankruptcy with certain conditions attached instead of simply dismissing the case and restoring the status quo ante" - that deviates from the Bankruptcy Code's priority scheme. See Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc. (In re Jevic Holding Corp.), Case No.

When a consumer debtor files a bankruptcy petition, a notice is mailed out by the court to all of the debtor’s scheduled creditors. In most bankruptcy courts, the notice contains the debtor’s filing date, case number, and other pertinent information meant to aid a creditor in identifying the debtor. In addition, the notice typically contains several important dates and deadlines.

On May 4, 2015, the United States Supreme Court unanimously held in Bullard v. Blue Hills Bank, Case No. 14-115, that a bankruptcy court’s order denying confirmation of a debtor’s proposed plan is not a “final” order that can be immediately appealed. The Supreme Court’s decision implicates practical considerations within the bankruptcy process and the appropriate balance between the bargaining power of debtors and creditors

Case Summary

To Our Clients and Friends Memorandum friedfrank.com Copyright © 2015 Fried, Frank, Harris, Shriver & Jacobson LLP 06/04/15 A Delaware Limited Liability Partnership 1 The Supreme Court Rules That Bankruptcy Judges May Adjudicate Stern Claims with the Parties’ Knowing and Voluntary Consent On May 26, 2015, the Supreme Court in Wellness International Network v.

Last week, in Wellness Int’l Network Ltd. v. Sharif, No. 13-935 (May 26, 2015), the Supreme Court held that a bankruptcy court can enter final judgment on “non-core” claims under 28 U.S.C. § 157 if the parties consent to that court’s jurisdiction.  It overturned a decision by the Seventh Circuit that relied heavily on the Sixth Circuit’s decision in Waldman v.

Jurisdiction of Bankruptcy Courts to Enter Final Judgment on “Stern Claims” Based on Consent of Parties Affirmed

The U.S. Supreme Court in Wellness Int’l Network, Ltd. v. Sharif1 explicitly affirmed the jurisdiction of Article I bankruptcy courts to issue final decisions on claims for which litigants are constitutionally entitled to Article III adjudication if the parties consent to the bankruptcy court adjudicating such claims.

In a decision that could have far reaching implications on the manner and level of secured creditor participation in bankruptcy cases, the Court of Appeals for the Seventh Circuit recently held that the deadline for filing proofs of claim under Bankruptcy Rule 3002(c) applied to all creditors – both unsecured and secured.  Previously, secured creditors had relied on conflicting cases that permitted secured creditors to f