High Court Chips Away at Bankruptcy Court’s Jurisdiction; Anna Nicole Smith’s Estate Loses

In the second consideration of the long-running dispute between the late Vickie Lynn Marshall (also known as Anna Nicole Smith) and E. Pierce Marshall over the fortune of J. Howard Marshall II, the U.S. Supreme Court in a 5–4 ruling held that a bankruptcy court lacked the constitutional authority to enter a final judgment on Vickie Marshall’s state law counterclaim against Pierce for allegedly interfering with her husband’s efforts to grant her an inter vivos gift (Stern v. Marshall).

As a result of the court’s ruling, Vickie Marshall’s estate loses its claim for some $89 million in damages ...