High Court Maintains Check On Bankruptcy Judges' Powers

Law360, New York (June 9, 2014, 10:22 AM EDT) -- The U.S. Supreme Court on Monday upheld a Ninth Circuit decision that allows bankruptcy judges to issue recommendations on key matters that may later be adopted by a federal district court.

The case examined the bankruptcy of Executive Benefits Insurance Agency Inc. and called into question the clarity of the high court's landmark 2011 Stern v. Marshall decision, which held that bankruptcy courts lack Article III authority to enter final judgment on certain types of claims.

The petition challenged a December ruling by the Ninth Circuit,...
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