The Bankruptcy Act of 1978 expanded the power of bankruptcy judges dramatically, giving them exclusive jurisdiction of all cases arising under the bankruptcy laws as well as original but not exclusive jurisdiction over “all civil proceedings arising under” or “arising in or related to cases under” the bankruptcy laws. The bankruptcy judges were to constitute the bankruptcy court for their district, which was to serve as an “adjunct” to the district court, and were to be appointed to 15-year terms by the president with the advice and consent of the Senate. In 1982, the Supreme Court ruled in Northern Pipeline that Congress’ broad grant of jurisdiction to the bankruptcy judges was unconstitutional because those judges were exercising “the judicial power of the United States” without the protections of Article III. Congress made a legislative fix in 1984, declaring the bankruptcy judges to be judicial officers of the U.S. district courts, while also providing that they would thereafter be appointed by the judges of the U.S. courts of appeals to renewable 14-year terms. The 1984 act distinguished between “core” bankruptcy matters for which bankruptcy judges could enter dispositive orders, and “non-core” matters in which they could only submit to the district court proposed findings of fact and conclusions of law.

Learn more about this case