Despite the implementation of various case processing innovations, the recent increase in bankruptcy filings necessitates the creation of 11 new bankruptcy judgeships, a representative of the federal Judiciary told a House subcommittee today.
"The bankruptcy courts have made great strides in the efficient processing of cases," said Chief Judge Paul A. Magnuson (D.Minn.), chair of the Committee on the Administration of the Bankruptcy System of the Judicial Conference of the United States. "The courts realize that efforts in this regard must never stop. Despite our quest for efficiency, the reality is that we need additional bankruptcy judges to provide for the proper administration of the bankruptcy system now."
Magnuson testified before the House Judiciary Subcommittee on Commercial and Administrative Law. Representative George Gekas (R-Pa.), the chair of the subcommittee, last month introduced H.R. 2604, which would create five permanent bankruptcy judgeships and six temporary bankruptcy judgeships.
The Bankruptcy Judgeship Act of 1995 would establish four permanent judgeships in the Central District of California and one permanent bankruptcy judgeship in the District of Maryland. One temporary bankruptcy judgeship would be created in each of the following districts: Southern District of Florida, Eastern District of Michigan, district of New Jersey, Eastern District of New York, Northern District of New York, and the Eastern District of Pennsylvania.
There currently are 326 authorized bankruptcy judgeships. The number of bankruptcy cases filed increased by 8 percent during the first three quarters of 1995, compared to the first three quarters of 1994. All indicators suggest that this growth will continue.
The Judicial Conference has strict and rigid requirements to assess the need for additional bankruptcy judgeships, Judge Magnuson said. A comprehensive work measurement study has been conducted and a refined case weight measuring system has been developed. The case weighting system, in place for nearly five years, helps standardize the criteria for requesting new bankruptcy judgeships. Other factors, including the nature and mix of a court's caseload and geographic, economic, and demographic factors also are taken into account.
The Conference's continuous reassessment of bankruptcy judgeship needs resulted in the Conference's recent decision to reduce its previous request for 19 additional judgeships to 11 new judgeships. In addition, in an effort to reduce costs and ensure that resources do not exceed needs, the Judiciary biennially assesses the continuing need for each authorized bankruptcy judgeship. Last year the Judicial Conference recommended that the statutory authorization for each bankruptcy judgeship be retained, but that five judgeships remain unfilled until a need is demonstrated in those respective districts. Since then, an additional four bankruptcy judgeships have been identified so that there are a total of nine vacant positions.
"The Judicial Conference has an excellent record of fully utilizing, and conserving, the judicial resources presently authorized before requesting additional bankruptcy judgeships," Judge Magnuson said. Earlier this year a comprehensive manual was published, providing information and guidance to bankruptcy judges on case management procedures. In addition, the Judiciary manages its resources through its "recall" program, which enables retired bankruptcy judges to handle judicial assignment for fixed periods.
"We are struggling with an overburdened system," Judge Magnuson told the subcommittee. "We are not asking our bankruptcy judges to do more - we are requiring it. We will continue to seek ways to improve the bankruptcy system's efficiency, but we critically need these 11 additional bankruptcy judgeships."
Also testifying in support of the legislation was Bankruptcy Judge William E. Anderson (W.D.Va.), chair of the Legislative Committee of the National Conference of Bankruptcy Judges, and Chief Bankruptcy Judge Paul Mannes (D. Md.).
###