This was originally posted on the SGR Blog.
But Who Is Bound And Is Dispute Arbitrable?
Many commercial agreements contain what appears to be an unambiguous clause mandating the arbitration of all disputes. But, as a recent case illustrates, a Court nevertheless may be called upon to determine who is bound to arbitrate and what issues are covered by that mandate.
On September 1, 2016, Bromberg & Liebowitz entered into an agreement with Pat O’Brien to purchase her accounting practice. The agreement provided that Pat O’Brien would provide consulting services to the practice during a transition period and that Jennifer O’Brien would work for the practice for at least one year. The agreement contained an arbitration clause. It was signed by B&L and Pat O’Brien and had a signature line for Jennifer O’Brien, but she did not actually sign the agreement.
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