28 U.S.C. section 157(b)(5)

Jun 23, 2011 Kent L. Richland, Edward L. Xanders (Ted) Constitutional Law
Stern v. Marshall (2011) 564 U.S. 462

The Supreme Court held that a bankruptcy court has statutory authority to enter final judgment on a debtor’s state-law counterclaims against a creditor, but that Article III of the United States Constitution makes the statutory grant unconstitutional. It also held that 28 U.S.C. section 157(b)(5), which specifies that district courts must order that “personal injury tort and wrongful death claims” be tried in district court, is not jurisdictional and creditors can consent, through their conduct, to a bankruptcy court resolving such claims.

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