Bankruptcy jurisdiction is a hot topic as of late, with the United States Supreme Court scaling back the types of issues that can be decided by a bankruptcy court. See Stern v. Marshall, 131 S.Ct. 2594 (2011). Recently, the United States Bankruptcy Court for the District of New Jersey decided a case that not only touched on the jurisdiction of the bankruptcy court, but enforcement of an arbitration clause in a case where the claims to be arbitrated included an alleged violation of the bankruptcy stay. In re Microbilt, 2012 Bankr. LEXIS 5731, ___ B.R. __ (Bankr. N.J. 2012). Although the bankruptcy court’s enforcement of the arbitration clause is of interest, the procedural wrangling between the parties offers an excellent insight into the many legal issues confronting bankruptcy litigators seeking to get their case into the most favorable forum (i.e., forum shopping).
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