The US Supreme Court agreed Friday to hear Goldman Sachs' appeal over whether bankruptcy courts can override arbitration agreements, a pivotal test of the Federal Arbitration Act's reach. The case stems from a Fourth Circuit ruling that blocked the bank from compelling arbitration in a suit by two Apple Card holders who alleged improper debt collection during a Chapter 13 stay. The majority held arbitration inherently conflicts with bankruptcy's centralized purpose, while dissenting Judge **Robert B.
King favored enforcement. A circuit split persists over applying a "core" versus "non-core" test to determine inherent conflict. The American Bankers Association backed Goldman Sachs, represented by Latham & Watkins LLP**.
The debtors, represented by Kellett & Bartholow PLLC and Giles & Lambert PC, opposed review. The case is Goldman Sachs Bank USA v. Brown, No. 25-1408.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing