Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

BankruptcyThe Bankruptcy StrategistFeatures

Third Circuit Sides With Magistrates On Bankruptcy Appeals

By Michael L. Cook
June 30, 2025

“We hold that, upon consent of the parties and referral by a district court, a magistrate judge may enter a final judgment in a bankruptcy appeal.” In re MTE Holdings LLC, 2025 WL 5682927*4 (3d Cir. May 7, 2025). This holding represents a split with the Fifth and Seventh Circuits. See, e.g., In re Elcona Homes Corp., 810 F. 2d 136, 140 (7th Cir. 1987) (“… the district court did not have the authority to refer the appeal from the bankruptcy court to a magistrate….”); Minerex Erdoel, Inc. v. Sina, Inc., 838 F. 2d. 781, 785 (5th Cir. 1988) (“… reference by District Court to a magistrate of an appeal from a bankruptcy court decision was not proper.”) See also, Virginia Beach Fed’l. Sav. and Loan Ass’n. v. Wood, 901 F.2d 849, 851 (10th Cir. 1990) (dicta) (“… magistrates are not permitted to enter final decisions in bankruptcy appeals.”). Most significant, MTE effectively overrules In re Morrissey, 717 F. 2d 100, 101 (3d Cir. 1983), an earlier Third Circuit decision relied on by the Seventh and Fifth Circuits in Elcona and Minerex.

Procedural Facts


The bankruptcy court had awarded summary judgment for the defendant in an adversary proceeding over withheld royalties. The plaintiff appealed to the district court, but the parties on the appeal had “consented to proceed before a magistrate judge for all proceedings, including final judgment.” Id., at *1. Relying on 28 U.S.C. §636(c), the magistrate judge (hereinafter “magistrate”) affirmed the bankruptcy court’s judgment, but the Court of Appeals affirmed in part and remanded on the merits after disposing of the jurisdictional issue. But the appellate jurisdictional analysis here is important.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.