WASHINGTON (AP) — The Supreme Court says bankruptcy courts have authority to rule on disputes that fall outside the bankruptcy proceedings if the parties to the case consent.
The 6-3 ruling on Tuesday helps clarify the power of bankruptcy judges. That had been in question since a 2011 high court decision that limited their authority to decide non-bankruptcy issues.
The case involves efforts by Wellness International Network, Ltd., to recover $655,000 in attorney fees from Richard Sharif, a Chicago resident with whom the company had a legal dispute. Sharif filed for bankruptcy in 2009 to avoid paying the debt. Wellness claimed Sharif had assets in a family trust that could be tapped and lower courts agreed.
The Supreme Court said lower courts must decide whether Sharif consented to the bankruptcy court deciding the issue.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- 5 safety pitfalls putting your business at risk
- Keeping outdoor workers safe in the scorching desert heat
- 7 common ways to get sued by your employees
- Distracted walking injuries end up not so funny
- Workers comp: Signs your co-worker could be a fraud
- Telecommuting: 5 tips to make it work for employers and employees