Richards Layton & Finger

View Emerging That Stern v. Marshall Does Not Apply to Fraudulent Transfer Claims

May 23, 2012

Since the Supreme Court decided Stern v. Marshall nearly a year ago, courts have diverged sharply on whether bankruptcy courts still have authority over fraudulent transfer claims.

Pre-Stern, most practitioners would scoff at the idea that bankruptcy courts lack authority to finally decide fraudulent transfer questions. After all, the bankruptcy courts have been deciding those questions for years. But now, many courts read Stern broadly and say that bankruptcy courts no longer can enter final orders on fraudulent transfer claims.