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Jurisdiction by Consent

Jurisdiction by Consent

May 29th, 2015 by lawfirm

In Wellness International Network, Ltd., et al. v. Sharif, _U.S._ (2015), the Supreme Court of the United States ruled that parties in a bankruptcy proceeding may knowingly and voluntarily consent to adjudication by a bankruptcy judge of a Stern claim without running afoul of Article III of the Constitution. In Stern v. Marshall, 564 U.S. 462 (2011), the Court had held that Congress could not constitutionally withdraw from the Article III courts “any matter which, from its nature, is a subject of a suit at the common law, or in equity, or admiralty.” In Wellness, the Court ruled that Stern claims can be heard by a bankruptcy court with consent of the parties and that, in such context, there would be no violation of Article III. The Court entered the Wellness decision on May 26, 2015.

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