Bankruptcy judge considers arbitration request

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted May 4, 2023 11:19 AM

Carefully analyzing a creditor’s motion to compel arbitration of a debtor’s three-count counterclaim in adversary proceedings, U.S. Bankruptcy Judge David D. Cleary concluded that there was “an inherent conflict between arbitration and the purposes of the Bankruptcy Code” for two of the claims. Before filing for bankruptcy under Chapter 13, Joan Johnson reportedly borrowed $4,000 from S.A.I.L. LLC — a company, referred to as SAIL, that operated out of the same premises and had the same managers as Americash Loans …

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