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Sternklar v. Heritgage Auction Galleries Inc. (In re Paul)

Sternklar v. Heritgage Auction Galleries Inc. (In re Paul)

Ruling
Fraud claims brought under Bankruptcy Code were not arbitrable.
Procedural posture

Plaintiff chapter 7 trustee and debtor sued defendant coin dealers, alleging, inter alia, breach of an employment agreement and fraudulent and preferential transfers of assets under a business relationship between the debtor and the dealers. Seeking to enforce arbitration clauses contained within various documents the debtor executed, the dealers moved to dismiss or stay and compel arbitration, or to dismiss pursuant to Fed. R. Civ. P. 9(b).

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Consumer opinion summary, case decided on November 04, 2008 , LexisNexis #1208-067