Questions About Bankruptcy Court Authority Continue

Law360, New York (May 19, 2017, 11:39 AM EDT) -- In Millennium Lab Holdings, U.S. District Judge Leonard Stark in Delaware, on an appeal from a bankruptcy court order confirming a plan of reorganization, recently upheld a challenge to the bankruptcy court’s constitutional authority to release claims against nondebtor third parties under the plan. Judge Stark’s opinion demonstrates the extent to which the constitutional questions raised by the U.S. Supreme Court six years ago in Stern v. Marshall continue to cast a shadow over the adjudication of bankruptcy cases.

In Stern, the Supreme Court raised separation-of-powers...
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