Michael Ackerman v. Jose Eber

Appellants Michael Ackerman and Floyd Kuriloff appeal the district court’s orders affirming the bankruptcy court’s denial of three motions: (1) Motion to Compel Arbitration and to Stay Adversary Proceeding (“Motion to Compel Arbitration”); (2) Motion for Relief from the Automatic Stay Under 11 U.S.C. § 362 (“Motion for Relief from Automatic Stay”); and (3) Motion to Vacate Order re Automatic Stay (“Motion to Vacate”). This appeal turns on the tension between the Federal Arbitration Act, 9 U.S.C. § 1 et seq. (“FAA”), and the United States Bankruptcy Code, 11 U.S.C. § 101 et seq (“Bankruptcy Code”), and more specifically, a bankruptcy court’s jurisdiction to determine dischargeability pursuant to § 523(a)(2), (4), and (6).

We hold that the district court did not abuse its discretion in denying Ackerman and Kuriloffs Motion to Compel Arbitration because granting the Motion would have “conflict[ed] with the underlying purposes of the Bankruptcy Code.” Cont’l Ins. Co. v. Thorpe Insulation Co. (In re Thorpe Insulation), 671 F.3d 1011, 1021 (9th Cir.2012); see also United States Lines, Inc. v. Am. S.S. Owners Mut. Prot. & Indem. Ass’n, Inc. (In re United States Lines, Inc.),…