'Wellness' Check For Bankruptcy — Confusion Reigns

Law360, New York (January 30, 2015, 11:18 AM EST) -- If the Jan. 14 U.S. Supreme Court arguments on bankruptcy jurisdiction in Wellness International Network Ltd. v. Sharif, No. 13-935 (S.Ct.), are any indication, the upheaval created by the court's decision in Stern v. Marshall, ___ U.S. ___, 131 S.Ct. 2594 (2011), is unlikely to be resolved soon. What emerges from the transcript is, in a word, confusion.

In Stern, the court, in a 5-4 decision, limited the power of the non-Article III bankruptcy judges to decide certain matters that arise in bankruptcy proceedings. What was left unclear in Stern was the court's rationale. As Justice Antonin Scalia pointed out in...

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