Volume 5 Winter 2011 Number 2 - Charleston Law Review

CHARLESTON LAW REVIEW [Volume 5proceedings. 28 Because bankruptcy courts are courts of limitedjurisdiction, deriving their authority from that granted to districtcourts, decisions by bankruptcy courts in non-core proceedingsare not considered “final orders.” 29 Instead, bankruptcy courtdecisions are proposed findings of fact and conclusions of lawsubmitted to the district court. 30 Rule 7008 of the Rules thusrequires: “In an adversary proceeding before a bankruptcy judge,the complaint, counterclaim, cross-claim, or third-partycomplaint shall contain a statement that the proceeding is core ornon-core and, if non-core, that the pleader does or does notconsent to entry of final orders or judgment by the bankruptcyjudge.” 3120028. Id.29. 28 U.S.C. § 157 (2006).Unlike courts that derive their authority from Article III of theU.S. Constitution, bankruptcy courts are courts of limited jurisdictionwhose authority is derivative of that granted to the district courts . . . .Cases under title 11, proceedings arising under title 11 of the U.S.Code and proceedings arising in a bankruptcy case are coreproceedings, while proceedings related to a case under title 11 arenoncore proceedings . . . .The distinction between core and non-core proceedings is criticalbecause a bankruptcy court is delegated the authority to enter ordersand judgments in core proceedings, subject to appellate review under28 U.S.C. § 158. However, when a proceeding is non-core, thebankruptcy court is limited to submitting proposed findings of factand conclusions of law, with the district court authorized to enter anyfinal order or judgment after de novo review.Thomas Michael Horan, A Primer on Bankruptcy Jurisdiction, AM.BANKR.INST.J., Sept. 2009, at 42, 42–43 (internal citations omitted).30. Id.31. FED. R. BANKR. P. 7008(a). In turn, Rule 7012(b) requires that aresponsive pleading “admit or deny an allegation that the proceeding is core ornon-core. If the response is that the proceeding i[s] non-core, it shall include astatement that the party does or does not consent to entry of final orders orjudgment by the bankruptcy judge.” FED.R.BANKR.P. 7012(b).