In Goldman Sachs Bank USA v. Brown, No. 25-1439 (4th Cir 2026), the Fourth Circuit refused to send a debtor's stay-violation claim to arbitration, ruling it belongs in bankruptcy court as a fundamental bankruptcy claim.
'Goldman Sachs v. Brown' Reinforces Limits On the FAA In Bankruptcy
The Goldman Sachs decision may offer a path through the longstanding conflict: beyond asking whether a dispute is core, future courts may use the Supreme Court’s analysis in Stern to assess whether the dispute lies within the bankruptcy court’s constitutionally protected sphere of authority.
By
Steve McNeill and Sarah Gladieux
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