Welp, Wellness is Decided . . . A HUGE Victory For The Bankruptcy System

Parties may consent to bankruptcy court hearing Stern claims. There was likely a collective sigh of relief by many bankruptcy attorneys and judges as a result of the majority decision of the Supreme Court in Wellness International Network, Ltd. v. Sharif, decided May 26. In an opinion by Justice Sotomayor, the majority held that Article III permits a bankruptcy judge to adjudicate Stern-type claims, provided the parties knowingly and voluntarily consent. Moreover, the consent does not necessarily have to be express, but implied consent must meet the knowing and voluntary standard.

The opinion may be accessed by clicking here. (Not password protected)

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