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5 Recent Bankruptcy-Related Decisions From the United States Supreme Court By Melissa Davis Lowe and Elyza P. Eshaghi The Supreme Court of the United States recently issued two decisions which will have ominous effects on bankruptcy practi- tioners. The jurisdictional confusion pro- duced by the Supreme Courts decision in Stern v. Marshall has only been partially clarified by this terms decision in Well- ness Intl Network Ltd. et al. v. Sharif and its ruling in Baker Botts L.L.P. v. ASARCO LLC is contrary to long standing commercial bankruptcy practice and cre- ates practical implications by denying counsel compensation for fee-defense liti- gation. All Hope is Not Lost for Bankruptcy Judges Parties Can Consent to the Adjudication of Stern Claims in Bankruptcy Court The Supreme Court has recognized a loophole in its decision in Stern v. Marshall 564 U.S. 2 2011 holding that litigants can consent to the jurisdiction of the Bankruptcy Court to hear so-called Stern claims. On May 26 2015 in a 6-3 decision the Court in Wellness Intl Net- work Ltd. et al. v. Sharif 135 S. Ct. 1932 2015 held that litigants can consent to the jurisdiction of the Bankruptcy Court to adjudicate Stern claims so long as the consent whether express or implied is knowing and voluntary. The petitioner in the Wellness case was a manufacturer of health and nutrition products that entered into a contract with respondent for the distribution of petitioners products. The relationship failed and peti- tioner eventually obtained a large judgment against respondent. Re- spondent then filed for bankruptcy and petitioner filed an adversary complaint objecting to respondents discharge and seeking declaratory relief that a trust which respondent alleged held over 5 million of as- sets for his mother and which respondent merely administered on her behalf was the alter ego of respondent. Continued on Page 6 Newsletter Editors Matthew K. Wegner Brown Wegner McNamara Rhianna S. Hughes Payne Fears