Analyzing The Post-'Stern' Landscape In New York

It has been more than two years since the U.S. Supreme Court's decision in Stern v. Marshall,^¹ and the New York courts and litigants are still struggling with the extent of Stern's application to the bankruptcy court's jurisdiction and constitutional authority to render final orders in adversary proceedings. In fact, "Stern v. Marshall has become the mantra of every litigant who, for strategic or tactical reasons, would rather litigate somewhere other than the bankruptcy court." In re Ambac Financial Group, 457 B.R. 299, 308 (Bankr. S.D.N.Y. 2011) (J. Chapman); see also In re Extended Stay, 466 B.R. 188, 202 (S.D.N.Y. 2011) (J. Scheindlin); In re Pali Holdings, 488 B.R. 841, 848 (Bkrtcy. S.D.N.Y. 2013) (J. Gerber).