NARB’s Formation

The National Association of Referees in Bankruptcy (NARB), k/n/a NCBJ, was formed in 1926 in response to a condition in which more than 500 bankruptcy referees, serving across 84 judicial districts, were plagued by isolation, largely worked alone; consulted little with one another; were criticized for being inefficient and prone to conflicts of interest; and were excessively reliant on estate assets to pay administrative costs. There was no repository of referee opinions or decisions, no FJC or ABI to provide educational programing, no formal code of ethics for referees, and no organized means for referees to communicate with each other.

In July 1926, referees formed NARB, adopted a constitution, elected officers, and created four standing committees: Ethics, Legislation, Resolutions, and Uniformity of Practice. Its mission was to serve as a clearinghouse for knowledge and experience, to promote collegial fellowship and ethics, and to serve as a force for greater uniformity in the administration of bankruptcy law.

In December 1926, NARB established the Journal of the National Association of Referees in Bankruptcy, which combined scholarly articles with news of the activities of the Association and those of individuals referees. It provided means for referees to learn of decisions of other referees and to promote scholarship and as a lifeline of communication among the nation’s bankruptcy referees. In 1971, the NARB Journal was divided into two separate publications ‒ what is now known as the American Bankruptcy Law Journal and the NCBJ Conference News. That has given the NCBJ enduring platforms for scholarship and communication.

In 1927, NARB embarked on its own educational programming. NCBJ continues that tradition today, providing extensive educational programming for bankruptcy judges, lawyers and other insolvency professionals at NCBJ Annual Conferences.

The Great Depression

The onset of the Great Depression magnified bankruptcy’s importance. In fiscal year 1930, over 60,000 cases were filed with nearly one billion dollars in scheduled obligations—staggering figures for the time. That led to an investigation into bankruptcy practices. NARB, initially hesitant to engage in legislation lest it compromise judicial neutrality, gradually shifted toward offering expertise and testimony before Congress. By 1932, NARB had emerged as a recognized institutional interlocutor in bankruptcy policy. NCBJ has continued that tradition. In the last ten years, the NCBJ Legislative Committee has worked with the Senate and House Judiciary Committees, and its members have testified in Congress on a variety of issues.

Bankruptcy Reform Act of 1978 and Marathon decision

The National Bankruptcy Conference and the NCBJ played visible roles in the road leading to enactment of the Bankruptcy Reform Act of 1978, providing testimony before Congress, acting as a key participant in shaping bankruptcy reform, and contributing to the drafting of the statute.

The NCBJ also played a crucial role in the fraught period after the Supreme Court delivered its seismic ruling in Northern Pipeline Construction Co. v. Marathon Pipe Line Co., 458 U.S. 50 (1982), holding that the broad grant of jurisdiction to bankruptcy courts—staffed by judges without Article III protections—was unconstitutional. NCBJ’s leadership coordinated communications among judges, provided a forum for strategy, and represented the bankruptcy judiciary in discussions with Congress and the Judicial Conference.

NCBJ Today

The NCBJ has embraced its role as the principal professional association of the bankruptcy judiciary, sustaining its broad portfolio and embarking on a significant number of new initiatives. These range from continuing to produce its Annual Conference, expanding its commitment to diversity and inclusion; nurturing a new generation of bankruptcy lawyers and judges; educating members of Congress about bankruptcy legislation; engaging in public outreach; sponsoring a scholarly publication; engaging in international judicial exchanges; awarding research grants; promoting cost containment for bankruptcy courts; and providing input to the Judicial Conference.

Hon. Scott C. Clarkson
Central District of California