Still Trying To Close The Stern V. Marshall Can Of Worms

Law360

In the article entitled Still Trying To Close The Stern V. Marshall Can Of Worms,” published by Law360 in its Expert Analysis section, special counsel Ben Feder discusses the ongoing impact of the U.S. Supreme Court’s decision in Stern v. Marshall, a case that arose out of the endless litigation between Anna Nicole Smith and the son of her late husband. Three years ago, the Court’s ruling stunned the commercial legal community by reopening what many had believed were long-settled questions regarding the constitutionality of the United States bankruptcy courts. Since then, practitioners and lower courts have struggled to deal with the ramifications of that decision. Ben reviews a case on the Court’s docket for next term, Wellness International v. Sharif, which highlights the inherent conundrum posed by Stern with respect to the jurisdiction of courts created by Congress under Article I of the Constitution rather than Article III. He states that the Court’s decision in Wellness International likely will determine whether the current structure of the bankruptcy courts remains viable.