WASHINGTON (AP) — The Supreme Court says bankruptcy courts have authority to rule on disputes that fall outside the bankruptcy proceedings if the parties to the case consent.
The recent 6-3 ruling helps clarify the power of bankruptcy judges. That had been in question since a 2011 high court decision that limited their authority to decide non-bankruptcy issues.
The case involves efforts by Wellness International Network, Ltd., to recover $655,000 in attorney fees from Richard Sharif, a Chicago resident with whom the company had a legal dispute.
Sharif filed for bankruptcy in 2009 to avoid paying the debt. Wellness claimed Sharif had assets in a family trust that could be tapped and lower courts agreed.
The Supreme Court said lower courts must decide whether Sharif consented to the bankruptcy court deciding the issue.
––––––––––––––––––––
Subscribe to the Legal News!
http://legalnews.com/Home/Subscription
Full access to public notices, articles, columns, archives, statistics, calendar and more
Day Pass Only $4.95!
One-County $80/year
Three-County & Full Pass also available
