Warren R Fries

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
WARREN R. FRIES : Case No. 06-11424PM
: Chapter 13
Debtor :
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :
MEMORANDUM OF DECISION
This case came before the court for hearing on January 17, 2007, on Motion filed by the
creditor, Dance Unlimited, Inc., to stay proceedings on Debtor’s objection to its proof of claim
fuked and to modify the automatic stay to permit arbitration to go forward. The Motion was
opposed by the Debtor.
This case was filed on March 16, 2006. Debtor’s Chapter 13 Plan was confirmed by an
Order of this court entered September 29, 2006. There were two unsecured claims without
priority filed in this case - the claim of Dance Unlimited, Inc., and the claim of Michael
Poteshman. Both of these claims grew out of construction contracts containing a mandatory
mediation/arbitration clause. See paragraph 9.10 of the contract. The Poteshman case went to
arbitration, and an award was entered December 19, 2005, in the sum of $152,114.00.
Debtor urges that he cannot bear the expense of arbitration, together with the payments
under his Chapter 13 Plan. It is inconceivable to the court that the expense of arbitration would
be more than the expenses of a full-blown adversary proceeding before this court and the cost of
any appeals therefrom, particularly in view of Debtor’s position stated in his objection to the
proof of claim that he denies any and all liability to the claimant.
Date signed January 17, 2007
Entered: January 18, 2007 Case 06-11424 Doc 95 Filed 01/18/07 Page 1 of 2

While the objection to a proof of claim is a core proceeding, the court finds that
arbitration should be compelled in this case in that the Bankruptcy Code does not inherently
conflict with the mediation or arbitration of this claim. There is no danger of a need to protect
anyone from piecemeal litigation, and the court finds insufficient reason to override the Federal
Arbitration Acts general policy favoring the enforcement of arbitration agreements. See
generally, MBNA America Bank, N.A., v. Hill, 436 F.3d 104 (CA2 2006), and In re White
Mountain Mining Company, LLC, 403 F.3d 164 (CA4 2005).
An appropriate order will be submitted by counsel.
cc:
Warren R. Fries, 306 W. Main Street, #2, Middletown, MD 21769
Scott C. Borison, Esq., 5500 Buckeystown Pike, Frederick, MD 21703
Stephen K. Carper, Esq., One West Church Street, Frederick, MD 21701
Timothy P. Branigan, Esquire, P.O. Box 1902, Laurel MD 20725-1902
United States Trustee, 6305 Ivy Lane, #600, Greenbelt MD 20770
End of Memorandum
Case 06-11424 Doc 95 Filed 01/18/07 Page 2 of 2