GS · News · 20261106N

Bankruptcy Arbitration Supreme Court Review

GOLDMAN SACHS GROUP INC · 2026-11-06 · Importance 31 · Surprise 42

The U.S. Supreme Court agreed to review Goldman Sachs’ request concerning whether bankruptcy courts can override arbitration agreements. The case asks when a bankruptcy court may refuse to enforce an arbitration agreement for claims under Section 362(k) of the U.S. Bankruptcy Code involving violations of the automatic stay. The review will test the reach of the Federal Arbitration Act, but the report provides no quantified financial exposure or timetable for a decision.

Key facts

• The US Supreme Court agreed to review Goldman Sachs’ request concerning whether bankruptcy courts can override arbitration agreements. source
• The Supreme Court agreed to clarify whether, and under what circumstances, a bankruptcy court can refuse to enforce an arbitration agreement for claims under Section 362(k) of the US Bankruptcy Code when a creditor violates the automatic litigation stay protecting bankrupt people and companies. source