Stern v. Marshall,
131 S. Ct. 2594 (6/23/2011) No. 10-179.
Issue: Is it constitutional for a United States bankruptcy court to issue a final decision regarding a compulsory counterclaim based on state law, or is the bankruptcy court limited to only issuing final decisions regarding counterclaims which are based on “core” issues of the bankruptcy proceeding?
Holding: The bankruptcy court had the statutory authority to issue a final and binding decision on a claim based exclusively on a right assured by state law. However, the bankruptcy court nonetheless lacked the constitutional authority to do so.