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Wellness Int'l Network, Ltd. v. Sharif

Docket No.: 13-935
Argued: January 14, 2015
Decided: 5/26/15

Topics:

Arbitration, Article I, Bankruptcy, Commerce Clause, Judicial Power, Sixth Amendment, Vesting Clause, judicial review, jury selection, patent, separation of powers

PartyNames: Wellness International Network, Limited, et al. v. Richard Sharif
Petitioner: Wellness International Network, Limited, et al.
Respondent: Richard Sharif

Court Below: United States Court of Appeals for the Seventh Circuit
Citation: 727 F.3d 751
Supreme Court Docket

Wellness International Network, Limited, et al.
v.
Richard Sharif
Consideration Limited:

12-1349 LIMITED TO QUESTIONS 1 AND 3 PRESENTED BY THE PETITION.

Question Presented:

1. Whether the presence of a subsidiary state property law issue in a 11 U.S.C. 541 action brought against a debtor to determine whether property in the debtor's possession is property of the bankruptcy estate means that such action does not "stem[] from the bankruptcy itself" and therefore, that a bankruptcy court does not have the constitutional authority to enter a final order deciding that action. 2. Whether Article III permits the bankruptcy courts to exercise the judicial power of the United States over claims against a debtor where the debtor has consented to the exercise of such judicial power by voluntarily filing for bankruptcy relief. In addition, this case also presents the two questions currently before the Court in Executive Benefits Insurance Agency v. Arkison, 133 S. Ct. 2880 (2013) (No. 12-1200). Because of the procedural posture of Executive Benefits-there the district court reviewed the CERT. GRANTED 7/1/2014 bankruptcy court's summary judgment order de novo-it is possible that the Court may conclude that no constitutional violation occurred and thus, not reach the issues on which certiorari was granted. In such event, this case presents the opportunity to address those questions, about which there is also a split among the circuits: 3. Whether Article III permits the exercise of the judicial power of the United States by the bankruptcy courts on the basis of litigant consent, and if so, whether implied consent based on a litigant's conduct is sufficient to satisfy Article III. 4. Whether bankruptcy courts have the statutory authority to submit proposed findings of fact and conclusions of law for de novo review by a district court in a "core" proceeding under 28 U.S.C. 157(b).

Wellness Int'l Network, Ltd. v. Sharif
ORAL ARGUMENT

January 14, 2015

Listen to Oral Argument in Wellness Int'l Network, Ltd. v. Sharif
Holding: REVERSED AND REMANDED
Vote: 6-3
Majority: Judgment Reversed, Case Remanded. Sotomayor, Kennedy, Ginsburg, Breyer, Kagan, Alito
Concurring: Alito
Dissenting: Roberts,Scalia,Thomas
Opinion By:
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