Oil States Patent Dispute Will Affect Bankruptcy Courts

By Benjamin Feder (January 17, 2018, 11:56 AM EST) -- The U.S. Supreme Court recently heard arguments in a patent dispute case, Oil States Energy Services LLC v. Greene's Energy Group LLC. Although the case has nothing to do with bankruptcy law, its outcome could have a substantial impact on bankruptcy practice and litigation. Both bankruptcy and patent law fall squarely within the scope of Congress' power under Article I, Section 8, of the Constitution, and in both instances Congress has created specialized forums in an effort to allow parties to address issues that are not susceptible to efficient disposition in federal district courts created under Article III of the Constitution. Oil States Energy concerns the limits of Congress' ability to create courts pursuant to Article I rather than under Article III, and therefore raises separation-of-power issues similar to those considered by the court in Stern v. Marshall, its 2011 decision limiting the authority of U.S. bankruptcy courts....

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