Fifth Circuit: District Court Improperly Referred Bankruptcy Appeal to Magistrate Judge for Final Determination

Summary

This article discusses a recent Fifth Circuit decision addressing whether a district court can refer a bankruptcy appeal to a magistrate for a final disposition. Federal district courts, with the consent of the parties, are authorized by statute to refer civil matters to magistrate judges for the purpose of conducting all proceedings and entering a judgment in the litigation. In the case of an appeal to a district court from a bankruptcy court, however, this statutory authority arguably conflicts with another statutory provision dictating that appeals from a bankruptcy court order or judgment be heard by a district court or a bankruptcy appellate panel.