Bankruptcy Courts Do Have Power To Decide State Law Issues

Law360, New York (October 11, 2013, 4:23 PM EDT) -- On Sept. 26, 2013, Judge Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan denied the Official Committee of Retirees’ motion to stay all eligibility proceedings pending its motion to withdraw the reference. In re City of Detroit, Mich., Case No. 13-53846, ECF No. 1039 (Bankr. E.D. Mich. Sept. 26, 2013).[1] Notably, the court refused to accept the committee’s broad interpretation of Stern v. Marshall, properly applied a traditional injunction test to the committee’s stay motion, and confirmed that a bankruptcy...
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