Norman Abood, et al. v. James P. Carroll, Chapter 7 Trustee

This case questions the Third Circuit’s appropriation of Congress’ exclusive power to create courts under Article III, § 1 of the United States Constitution. Specifically, it challenges the creation by the Third Circuit Judicial council of the Virgin Islands Bankruptcy Court (“VIBC”), a court neither created nor authorized by the U.S. Constitution nor by Congressional enactment. Petitioners seek review of a Third Circuit decision that, at least two members of the three judge panel below recognized "has decided an important federal question in a way that conflicts with relevant decisions of this Court." The Circuit’s decision below also legitimized sanctions imposed by, per the same two concurring Circuit Judges, “an arguably invalid court with no adjudicative authority.” The questions presented are:

1. Whether the Virgin Islands Bankruptcy Court is lawfully constituted under Article III, § 1 of the United States Constitution.

2. Whether this Court’s rule of limited statutory interpretation announced in Nguyen v. United States, 539 U.S. 69 (2003) overruled the Third Circuit’s expansive interpretation announced in Vickers Assocs., Ltd v. Urice (In re Jaritz Indus.), 151 F.3d 93 (3d Cir. 1998).