US Supreme Court to hear and decide 2 appeals in two different bankruptcy cases
The United States Supreme Court has granted “certiorari” on two bankruptcy cases, meaning that the United States Supreme Court will hear and decide the the appeals of the following 2 bankruptcy cases, in the Court’s 2013-2014 session The two cases are the appeals of (1) Law v. Siegel, which questions whether the court may use its general equitable authority under §105 of the Bankruptcy Code to surcharge a debtor’s exempt assets, and (2) Executive Benefits Insurance Agency v. Arkison (In re Bellingham), which will address the bankruptcy court’s authority to adjudicate Article III matters. Whenever the US Supreme Court rules on an issue, every federal court in the US, including every Bankruptcy Court in the US, is REQUIRED to do what the US Supreme Court rules. This is referred to as lower federal courts being “bound” by US Supreme Court rulings, whether or not the Circuit Judge, District Judge, Bankruptcy Appellate Panel Judge, or Bankruptcy Judge agrees or disagrees with the US Supreme Court’s decision.