Bankruptcy Court Had No Article III Authority To Enter Final Judgment on Non-Core Claims

A bankruptcy court did not have constitutional authority to issue a final, appealable judgment on non-core state law claims a debtor in bankruptcy brought against business associates, the U.S. Court of Appeals for the Fifth Circuit held Nov. 11 (BP RE, L.P. v. RML Waxahachie Dodge, LLC (In re BP RE, L.P.), 2013 BL 313900, 5th Cir., No. 12-51270).

Further, the parties could not waive or consent to the constitutional deficiency, the court said in an opinion by Judge Jerry E. Smith. This holding highlights a split between the circuits on the issue.

The U.S. Supreme Court in ...