IN RE GURGA

BAP No. NC-93-2201-MeVO. Bankruptcy No. 91-56686-ASW-CZ. Adv. No. 93-5288.

176 B.R. 196 (1994)

In re James GURGA, dba Source Communications, Debtor. MCI TELECOMMUNICATIONS CORPORATION, Appellant, v. James GURGA, dba Source Communications, Appellee.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Decided December 30, 1994.


Attorney(s) appearing for the Case

Karen P. Power, Washington, DC, D. Ronald Ryland, San Francisco, CA, for appellant.

Scott L. Goodsell, San Jose, CA, for appellee.

Before MEYERS, VOLINN and OLLASON, Bankruptcy Judges.


OPINION

MEYERS, Bankruptcy Judge:

I

MCI Telecommunications Corporation ("MCI") appeals an order of the bankruptcy court denying MCI's motions to stay an adversary proceeding pending arbitration and for relief from the automatic stay to assert a counterclaim in the arbitration proceeding.

We hold that a bankruptcy court must enforce an agreement to arbitrate a claim that is noncore. Accordingly, we REVERSE.

II

...

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