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ARTICLE · 14 AUGUST 2015

Do You Consent?

The impact of the Supreme Court's decision in Wellness on bankruptcy litigation and the Seventh Circuit's recent response to the Supreme Court's remand.

United StatesInsolvency/Bankruptcy/Re-Structuring

The impact of the Supreme Court's decision in Wellness on bankruptcy litigation and the Seventh Circuit's recent response to the Supreme Court's remand.

Professor Erwin Chemerinsky recently prognosticated that the Supreme Court's ruling in Wellness International Network, Ltd. v. Sharif1, issued on May 26, 2015, will spawn "a great deal of litigation in courts across the country." Chemerinsky: These 4 lesser-known SCOTUS decisions are sure to spawn more litigation. The issue over which this litigation will supposedly occur is whether a party has implicitly consented to have a bankruptcy court finally decide a non-bankruptcy claim, typically state law based. Just a week ago, the Seventh Circuit Court of Appeals chimed in on this question, ruling in response to the Supreme Court's remand of the Wellness case.

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