October Term 2010 · Docket 10-179

Can a bankruptcy judge decide a state-law fraud claim?

The dispute centers on whether a bankruptcy judge can resolve a state-law fraud claim filed against a debtor.

Official caption
Stern v. Marshall
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Argued
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Official Transcript

Verified source milestones

  1. — An official oral-argument transcript was verified.

The arguments, in order

This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.

  1. Argument 1 ·

    What happened at the argument

    Mr. Richland stated that Pierce Marshall filed a claim in Vickie Marshall's bankruptcy case.

    Mr. Englert listed three possible grounds for the lower court's decision, including one constitutional ground.

    Mr. Stewart addressed the unconstitutional conditions doctrine and the choice between two constitutional rights.

    Read the official transcript for this argument · Official argument details

    Sources used for this argument breakdown

A citizen's guide to the whole case

What this case is about

This case tests the limits of bankruptcy court power. The core issue is whether these judges can decide state-law claims without violating the Constitution.

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How the case got here

The Supreme Court heard oral argument in this case on January 18, 2011.

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What each side wants

the side that brought the case wants the Supreme Court to strike down the lower court's decision.

the opposing side wants the Supreme Court to keep the lower court's decision in place.

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What each side says

the side that brought the case argues the bankruptcy judge lacks constitutional power to decide this state-law claim.

the opposing side argues the bankruptcy judge has statutory and constitutional authority to decide this claim.

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What the justices asked

Justice Sotomayor asked for the constitutional basis for the bankruptcy court's power.

Justice Sotomayor questioned if a bankruptcy court can adjudicate proof of claims without violating Article III.

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Why it matters

This case defines the boundary between bankruptcy judges and Article III judges. It determines who decides state-law claims in bankruptcy. The outcome shapes the structure of the federal judiciary.

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What happens next

This article currently covers the argument record. Use the official docket link for later case activity.

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Official Court provenance

Official docket and case history · Official Supreme Court oral-argument detail page

Title and summary sources

Revision history

  1. Revision 1 · Official Transcript ·

    Correction: Rewritten to the concise citizen-facing editorial standard.

  2. Revision 2 · Official Transcript ·

    Correction: Migrated to the dated official Court activity contract without model use.

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