Venue: |
SCOTUS
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Facts: |
Congress creates bankruptcy courts which appear to be part of the
executive branch. They're almost like Article III courts, except
they can't enjoin other courts, and the judges are appointed for
terms. There's a breach of contract
suit between the parties, and one files for banrupcy. The other
contends that this is an impermissible usurpation of Article III
powers. |
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Posture: |
Suit for damages; motion to dismiss for want of jurisdiction. Bankruptcy
judge denies the motion. Appeal. |
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Issue: |
Does the Bankruptcy Act of 1982 violate Article III's command that the
judicial power be vested in courts whose judges enjoy the protections
specified in that article? |
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Holding: |
Yes. The proceedings are stayed so that congress can reorganize
things. |
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Rule: |
Article III bars congress from vesting the essential attributes of the
judicial power in an adjunct budy. |
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Reasoning: |
If congress creates a right, it can create a procedure by which it can be vindicated, but this is not that. Here, we're not talking about
the ajudication of state-created rights, but the restructuring
of debtor-creditor relations; this is the sort of dispute-resolving
that's at
the core of the judicial function. The judicial power of the
US must be vested in an independent judiciary. Because of their
various attributes, it's clear that the bankruptcy judges aren't
Article III judges. |
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Dicta: |
White (dissenting): this isn't really a usurpation of federal judicial
power, since without a federal bankruptcy court, these would pretty
much be state matters. We should defer to congress's judgment. |
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