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Analysis Of Courts' Discretion To Enforce Arbitration Of Core Claims, Sarah L. Hautzinger
Analysis Of Courts' Discretion To Enforce Arbitration Of Core Claims, Sarah L. Hautzinger
Bankruptcy Research Library
(Excerpt)
In general, a bankruptcy court has original and exclusive jurisdiction of chapter 11 bankruptcy cases. However, problems arise when a prepetition contract contains an arbitration clause, and a court must decide if it has discretion to enforce arbitration of a core claim. The statutes that play essential (but competing) roles in a court's analysis are the Federal Arbitration Act ("FAA") and the United States Bankruptcy Code (the "Bankruptcy Code"). In sum, "bankruptcy policy exerts an inexorable pull towards centralization while arbitration policy advocates a decentralized approach toward dispute resolution."
In these cases, a bankruptcy court must determine if there …