Northern Pipeline & Stern Opinions By: Donald L Swanson The U.S. Supreme Court has never liked like the Bankruptcy Code and has worked diligently, over the decades, to limit the authority of bankruptcy courts and bankruptcy judges. Two examples are U.S. Supreme Court opinions that have anniversaries this month—in June of 2026: 44 years ago (on... Continue Reading →
Bankruptcy Court Authority & “Stuff . . . Tried By The Courts At Westminster In 1789” (Part 2)
Northern Pipeline & Stern Opinions By: Donald L Swanson Here is a common statement of bankruptcy court jurisdiction: “The Court has constitutional authority to determine this matter because it,” “is purely a matter of bankruptcy law”; and “does not require the resolution of any matter similar to ‘the stuff of the traditional actions at common law... Continue Reading →
Anniversaries: 15 Years of Stern v. Marshall & 44 Years of Northern Pipeline (Part 1)
Northern Pipeline & Stern Opinions The Bankruptcy Code goes into effect on October 1, 1979. I take the Nebraska Bar Exam in July of 1980 and am sworn-in to practice law in Nebraska in September of that year. Two years later (forty four years ago), the U.S. Supreme Court issues its Northern Pipeline Construction Co.... Continue Reading →
Federal Court Jurisdiction Over Arbitration Awards: At U.S. Supreme Court (Jules v. Andre Balazs)
"Look through" jurisdiction? (Photo by Marilyn Swanson) By: Donald L Swanson Hypothetical: Plaintiff sues Defendant in Federal District Court on a federal question claim; the Court grants Defendant’s motion to refer the case to arbitration and to stay the court case until arbitration concludes; the arbitrators rule for Defendant and award nothing ($0.00) to Plaintiff; ... Continue Reading →
Nondischargeability For “Willful And Malicious Injury” Cannot Be Based On Vicarious Liability (M.O. v. Rosario)
Honest and unfortunate (photo by Marilyn Swanson) By: Donald L Swanson Nondischargeability for “willful and malicious injury by the debtor to another entity or to the property of another entity,” under § 523(a)(6), cannot be based on a principal-agent theory of vicarious liability. That’s the holding of M.O. v. Rosario (In re Rosario), Case No. CC-24-1163... Continue Reading →
Oral Arguments At U.S. Supreme Court On Judicial Estoppel And Bankruptcy (Keathley v. Buddy Ayers)
Oral Arguments Transcript -- Title Page By: Donald L Swanson Will the U.S. Supreme Court consider the interests of Debtor’s creditors and bankruptcy estate in deciding whether Debtor’s pursuit of a lawsuit is barred by judicial estoppel? That’s an issue in Keathley v. Buddy Ayers Construction, Inc., Case No. 25-6 at the U.S. Supreme Court, in... Continue Reading →
U.S. Supreme Court: Bankruptcy Discharge Standard Of Proof As Precedent In Other Contexts (E.M.D. Sales v. Carrera)
Precedent? (Photo by Marilyn Swanson) By: Donald L Swanson The U.S. Supreme Court doesn't issue a lot of bankruptcy opinions. But it does use its bankruptcy opinions as precedents in non-bankruptcy opinions. One such precedent example is E.M.D. Sales, Inc. v. Carrera, 144 S. Ct. 483 (2025), which holds: “Fair Labor Standards Act of 1938 requires... Continue Reading →
At U.S. Supreme Court: Judicial Estoppel For Failure To Disclose A Claim—But What About Interests Of Creditors? (Keathley v. Buddy Ayers), Part 1
Estopped? (photo by Marilyn Swanson) By: Donald L Swanson A Petition for Writ of Certiorari has been granted by the U.S. Supreme Court in Keathley v. Buddy Ayers Construction, Inc., Case No. 25-6, on a ruling from the U.S. Fifth Circuit Court of Appeals.[Fn. 1] The Question Presented in Kethley v. Buddy Ayers is this: “Whether... Continue Reading →
U.S. Government’s Bias On Bankruptcy Cases (Hertz v. Wells Fargo)
Even-handed? (photo by Marilyn Swanson) By: Donald L Swanson The U.S. Supreme Court does not like the Bankruptcy Code. It never has. Two examples are: in Northern Pipeline v. Marathon Pipe Line (1982), the Supreme Court comes within one vote of declaring the entire Bankruptcy Code unconstitutional—and while it fails to deal the Code a mortal... Continue Reading →
Are Exculpations From Post-Petition Liability In Chapter 11 Plans Permissible? (Highland Management, at U.S. Supreme Court)
Exculpated? (photo by Marilyn Swanson) By: Donald L Swanson On June 9, 2025, Justice Alito rules, “denied,” on Debtor’s request for a stay pending appeal in: Highland Capital Management, L.P. v. NexPoint Advisors, L.P., Case No. 24A1154 at U.S. Supreme Court. That’s the second denial by the U.S. Supreme Court in the Highland Capital bankruptcy. The... Continue Reading →