Recent Decisions

Goldman Sachs Bank USA v. Brown, 2026 U.S. App. LEXIS 7993, __ F.4th ___ (4th Cir. Mar. 18, 2026) – Goldman Sachs could not compel arbitration of debtors’ stay violation claim, even if there is a valid arbitration agreement between the parties. The Court explained “that arbitration would interfere and conflict with the strong and established policies and purposes of the Bankruptcy Code….” Accordingly, the Fourth Circuit affirmed the bankruptcy court’s denial of motion to compel arbitration, and the matter was remanded for further proceedings on the debtors’ stay violation claims.

Palazzo v. Bayview Loan Svg., LLC, 2026 U.S. App. LEXIS 8323, __ F.4th __ (4th Cir. Mar 20, 2026) – The Fourth Circuit held that monthly statements, payoff statements, and 1098 forms set to a debtor during a bankruptcy case were not attempts to collect a debtor but rather informational statements. The various documents contained disclaimers that negated any perceived intent to collect, and the debtor did not show the elements to support claims for stay violations, state law violations, and violations of the FDCPA.  

Malloy v. Schelin, 2026 U.S. Dist. LEXIS 63819 (E.D. Va. Mar. 25, 2026) – appeal of bankruptcy court’s order modifying the stay for 120 days to allow parties to enforce a final judgment rendered against the debtor was denied as moot since the 120 days had run and during that time there was no enforcement of the final judgment; appellant was in same position as before the bankruptcy court entered the order and remanding the matter back to the bankruptcy court would not change the outcome since the relief sought is in place.