Bankruptcy and Arbitration: Like Oil and Vinegar?

Debra A. Dandeneau, a partner at Weil, Gotshal & Manges, writes that the overall arbitrability of bankruptcy issues is unpredictable, and recent case law highlights the tension between the policies underlying federal bankruptcy law and arbitration: bankruptcy courts attempt to apply the strong public policy in favor of arbitration, but recognize that such public policy must have its limits when bankruptcy principles are the predominant issue before the court.

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