The 1994 marriage of J. Howard Marshall II (Yale Law, ’31) to Vickie Lynn Marshall, also known as Anna Nicole Smith (Playboy Playmate of the Year, ’93), continues titillating bankruptcy lawyers (and perhaps general litigators who find themselves in bankruptcy court) by producing U.S. Supreme Court decisions that are shaking up the bankruptcy court system and leaving lawyers on uncertain ground.
In Stern v. Marshall, in the dispute between Smith’s estate and the estate of Marshall’s heir Pierce Marshall, the high court on June 28determined that bankruptcy judges no longer can decide litigants’ state-law-based disputes over their objection, even if those litigants filed proofs of claims in the bankruptcy case. Cases involving state law causes of action cannot proceed to trial in bankruptcy court without the parties’ consent. Lawyers are inundating bankruptcy courts with motions to dismiss or to remand cases to state courts.
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