In the Matter of BELLINGHAM INSURANCE AGENCY, INC., Debtor.
Executive Benefits Insurance Agency, Appellant,
v.
Peter H. Arkison, Trustee, solely in his capacity as Chapter 7 Trustee of the estate of Bellingham Insurance Agency, Inc., Appellee.
United States Court of Appeals, Ninth Circuit.https://leagle.com/images/logo.png
Argued and Submitted October 13, 2011.
Filed December 4, 2012.
Attorney(s) appearing for the Case
Nicholas Arthur Paleveda ; Law Offices of Nicholas Paleveda MBA J.D. LL.M, Bellingham, WA, for Appellant.
Seth P. Waxman and Craig Goldblatt ; Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., for Amici Curiae S. Todd Brown, G. Marcus Cole, Ronald D. Rotunda, and Todd J. Zywicki.
John Anthony Edwards Pottow ; University of Michigan Law School, Ann Arbor, MI, for Amicus Curiae John Anthony Edwards Pottow.
Roberta Ann Colton ; Trenam Kemker Attorneys, Tampa, FL, for Amicus Curiae the Business Law Section of the Florida Bar.
Paul D. Moore ; Duane Morris LLP, Boston, MA, for Amici Curiae New CH YMC Acquisition LLC, Yellowstone Mountain Club, LLC, and Yellowstone Development, LLC.
Lynne F. Riley ; Riley Law Group LLC, Boston, MA; and Jessica D. Gabel ; Georgia State University College of Law, Atlanta, GA, for Amicus Curiae National Association of Bankruptcy Trustees.
Nathaniel Garrett ; Jones Day, San Francisco, CA, for Amicus Curiae Jones Day.
Sarang Vijay Damle and Robert Loeb ; U.S. Department of Justice Civil Division, Washington, D.C., for Amicus Curiae United States of America.
Christopher Conant ; Conant Law LLC, Denver, CO, for Amicus Curiae Timothy L. Blixseth.
David Anthony Gaston ; Law Offices of David Anthony Gaston, San Diego, CA; and Edward Silverman ; Sandler Lasry Laube Byer & Valdez, LLP, San Diego, CA, for Amici Curiae Alejandro Diaz-Barba and Martha Margarita Barba de la Torre.
Before ALEX KOZINSKI, Chief Judge, RICHARD A. PAEZ, Circuit Judge, and RANER C. COLLINS, District Judge.
United States Court of Appeals, Ninth Circuit.
OPINION
PAEZ, Circuit Judge:
This quotidian bankruptcy case presents a novel question: can a non-Article III bankruptcy judge enter a final judgment in a fraudulent conveyance action against a nonclaimant to the bankruptcy estate? Federal law empowers bankruptcy judges to do so, but we hold that the Constitution forbids it.
The Executive Benefits Insurance Agency suffered an adverse final judgment in a fraudulent conveyance at the hands of a bankruptcy...
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