Eventually, the Supreme Court will decide whether bankruptcy is a unique exception to the general rule that arbitration agreements are rigorously enforced.
Bankruptcy Judge David Warren warns small business trustees that they won’t be compensated if they are “overzealous” or undertake “unnecessary or duplicative services.”
Dealing with the debt left over from a defunct business is enough to qualify as a small business debtor under the new subchapter V of chapter 11, Judge Burris rules.
Courts are split on the question of whether the incorporation of AAA rules by reference allows arbitrators to decide threshold questions of arbitrability and validity of an agreement to arbitrate.