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Anna Nicole Smith Goes Shopping: The New Forum Shopping Problem In Bankruptcy, Gilbert Marcus Cole, Todd J. Zywicki

Gilbert Marcus Cole

The American bankruptcy system is a hybrid of state law and federal bankruptcy law. Under the Butner principle, federal bankruptcy courts preserve substantive non-bankruptcy law entitlements in bankruptcy unless bankruptcy policies compel a contrary result. This hybrid system, however, gives rise to the threat of forum-shopping if parties attempt to invoke bankruptcy jurisdiction for improper purposes, namely to rearrange non-bankruptcy entitlements to advance no coherent bankruptcy policy. Modern developments in bankruptcy law, as exemplified in the case of Marshall v. Marshall raise a novel threat of bankruptcy forum-shopping. Marshall involved the bankruptcy of tabloid starlet Anna Nicole Smith and her …