Supreme Court Reviews Goldman Sachs Arbitration Request
The justices agreed to hear whether bankruptcy courts can override arbitration agreements in claims under Section 362(k) of the Bankruptcy Code.
Updated on Nov. 6, 2026 in Debt Relief
The Supreme Court agreed Friday to review a request from Goldman Sachs on whether bankruptcy courts have authority to override arbitration agreements. The question concerns claims brought under Section 362(k) of the U.S. Bankruptcy Code.
Why it matters
Goldman Sachs said issues under Section 362(k) arise frequently in bankruptcy cases and have produced a split among federal appeals courts. A ruling could clarify whether creditors and debtors must pursue such disputes through arbitration or in bankruptcy court.
The evidence is a Supreme Court grant of review on a petition filed by Goldman Sachs, with no dollar figures in the source. The Court has not yet scheduled argument, and the extraction does not identify the lower-court decisions that prompted the petition.
The players
Goldman Sachs
Goldman Sachs is a multinational investment bank and financial services firm headquartered in New York City that frequently appears in federal litigation involving arbitration agreements.
The details
The Supreme Court approved Goldman Sachs' petition asking the justices to decide whether bankruptcy courts can override arbitration agreements. The dispute centers on claims under Section 362(k) of the Bankruptcy Code, a provision that governs automatic stay violations.
Timeline
November 6, 2026: The Supreme Court agreed to review Goldman Sachs' request.
Market Dynamics
The review concerns Section 362(k) of the Bankruptcy Code, whose damages remedy for willful automatic stay violations has produced divergent appellate interpretations about arbitration. A Supreme Court decision would settle how debtors and creditors in bankruptcy cases can enforce that remedy.
For debtors and creditors involved in bankruptcy proceedings, the outcome will determine whether disputes over automatic stay violations proceed in arbitration or before the bankruptcy judge. Parties in pending cases should watch for the Court's eventual ruling, which will set a uniform national rule.
The takeaway
Arbitration clauses in loan and account agreements may not automatically govern bankruptcy-related disputes, depending on how the Supreme Court resolves this question. Borrowers and creditors should review how their agreements address dispute resolution if a bankruptcy case arises.
Further reading
For more on how bankruptcy protections interact with creditor claims, see Debt Relief.
