Also known as: relating to · related-to · concerning · pertaining to
Written by attorneys · grounded in primary & secondary sources — see below
An expression denoting a logical, factual, or legal connection between two matters, claims, or proceedings.
Congress enacts a tax statute under its Article I powers. A creditor sues a debtor's surety in state court to collect on a supersedeas bond after the debtor files bankruptcy. The bankruptcy court determines the suit is related to the bankruptcy case because the outcome could affect the estate's assets available for distribution.
A plaintiff files suit against the wrong corporate defendant and later amends to name the correct party after the limitations period. The new defendant knew the suit was intended for it but for the naming error. The amendment relates back because the proper party shares an identity connection with the original action.
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During negotiations to settle a contract dispute, one party makes statements offering a reduced payment. When the case reaches trial the offering party seeks to introduce those statements to prove the claim's invalidity. The court excludes them because the statements were made during compromise negotiations connected to the disputed claim.
A director learns of a business opportunity and discloses all material facts to the board before pursuing it personally. Shareholders then disclaim the corporation's interest through proper procedures. The director's later pursuit is not improper because the opportunity connects to a transaction treated under the conflicting-interest rules.
A judge previously represented one party in a matter now before the court. The opposing party moves for recusal because the judge has personal knowledge of disputed facts. The judge steps aside because the prior representation creates a relationship to the proceeding that requires disqualification.
A client instructs counsel to accept a settlement offer that resolves all claims. Counsel believes a better outcome is possible at trial and advises against acceptance. Counsel must follow the client's decision because the client controls objectives connected to settlement of the matter.
The test asks whether the outcome of the proceeding could conceivably have any effect on the estate being administered in bankruptcy. Courts apply this standard to matters that impact the bankruptcy case even if they do not arise directly under the Code.
Related-to jurisdiction covers proceedings that affect the estate but do not invoke substantive rights created by the Bankruptcy Code or matters that can arise only in bankruptcy. Core proceedings that arise under or in a title 11 case allow the bankruptcy judge to enter final orders without party consent.
Yes when the outcome could conceivably affect the estate. An injunction preventing collection on a supersedeas bond posted by a third-party surety of the debtor qualifies as related to the bankruptcy case.
Section 1367 uses a related-to standard requiring that additional claims form part of the same case or controversy under Article III. This mirrors the bankruptcy test by focusing on whether the claims share a common nucleus of operative fact.