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The Ninth Circuit rejected an appeal by the lawyers of Anna Nicole Smith’s estate. Smith’s attorneys’ filed for an en banc review just weeks after a Ninth Circuit panel upheld the previous decision of the Texas probate court, ruling that J. Howard Marshall II provided for Smith during their courtship and marriage and she had no further claims on his estate. Legal expert Todd Zywicki released this statement in response to their decision:
This 15 year old legal dispute has focused on jurisdiction of the courts. A Texas probate court upheld the intent of Marshall’s Will and Living Trust back in 2001 but not before Smith had “forum shopped” to file a counterclaim in a Bankruptcy court. The recent Ninth Circuit decision affirmed that the Texas probate court was the clear “trial of record” for the case.
By refusing to hear the case in front of an eleven judge en banc panel the 9th circuit’s decision avoids a dangerous legal precedent that could have opened the flood gates for court forum shopping. If the 9th Circuit had ruled in favor of Smith, then disappointed claimants could potentially challenge every estate plan and contract in bankruptcy court. Bankruptcy courts have authority to provide a final resolution of only “core” issues related to the bankruptcy case itself and should not be used as a vehicle to game the legal system.
Smith’s attorneys have vowed to continue the appeals process all the way back to the U.S. Supreme Court, but the unanimous decision of the panel is clearly correct. The recent 9th Circuit’s decision addressed the Supreme Court’s concerns over the outstanding appellate issues and so their ruling should stand.

Zywicki offers more insight into this case in his new article, “The New Forum Shopping Problem in Bankruptcy”.

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