US Supreme Court Holds Implied Consent Sufficient for Bankruptcy Court Jurisdiction

May 28, 2015

On May 26, the U.S. Supreme Court held that, so long as parties knowingly and voluntarily consent, a bankruptcy court can issue final orders on matters that it otherwise would not have the constitutional authority to decide. In Wellness Int’l Network v. Sharif, a highly anticipated decision, the majority of the Supreme Court delivered a pragmatic opinion that quelled fears stemming from the Court’s 2011 decision in Stern v. Marshall, which found that the constitutional authority of bankruptcy courts is not as extensive as the statutory authority granted to them by Congress.

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