Stern v. Marshall: Supreme Court Limits Bankruptcy Court Jurisdiction Over State-Law Counterclaims

On June 23, 2011, the Supreme Court decided Stern v. Marshall, 564 U.S. ___ (2011), which as a practical matter may significantly limit the litigation of state-law claims in bankruptcy courts, and eliminates the previous risk that creditors, by the mere act of filing claims, submit to bankruptcy court jurisdiction with respect to all counterclaims of the debtor. Click here for more..