Justices Silence Doubt Over Bankruptcy Court Authority

Law360, New York (May 26, 2015, 7:19 PM EDT) -- The U.S. Supreme Court on Tuesday endorsed the authority of bankruptcy judges to make final rulings on a slew of issues, averting the upheaval to the bankruptcy scheme that attorneys feared would come if the justices had determined the Constitution prevented the courts from making binding decisions.

In a 6-3 decision, the Supreme Court on Tuesday determined that so long as parties consent to a bankruptcy court's jurisdiction, bankruptcy judges can rule on certain types of disputes and claims that flow from liquidations and restructurings but would normally belong in district court. The decision overturns a Seventh Circuit ruling that cast...

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