By: Seth Meyer
St. John's Law Student
American Bankruptcy Institute Law Review Staff
In a major expansion of the use of mandatory mediation, the Michigan Bankruptcy Court ordered mediation of nearly 1170 preference actions filed in conjunction with Collin& Aikman’s
Chapter 11 reorganization plan.
In re Collins & Aikman Corp., 376 B.R. 815 (Bankr. E.D. Mich. 2007. The court concluded that mediation “will promote the just, speedy and inexpensive resolution of these adversary proceedings.”
The court went further and both required defendants to share the costs of mediation and provided for default judgment to be entered against parties failing to engage in the mediation process.