Enforcing
Arbitration Decisions
ZEK has a nationwide practice representing
companies seeking to enforce arbitration agreements. We have
successfully achieved rulings in courts from Oregon to Delaware
requiring the disputes be submitted to arbitration in accordance
with our clients' contracts. Three of those decisions advancing
the right of our clients to require arbitration have recently
been published.
In In re Transport Associates,
Inc., 263 B.R. 531 (W.D. Ky. 2001), the United States
Bankruptcy Court for the Western District of Kentucky granted
our client's motion to compel arbitration of a trustee's objection
to a Bankruptcy Proof of Claim. The court rejected the trustee's
assertions that arbitration would conflict with the Bankruptcy
Court's jurisdiction or that Kentucky state law prohibited
arbitration of the dispute. The court held that the parties
entered into a valid agreement to arbitrate, that the Federal
Arbitration Act preempted both state law and the Bankruptcy
Code. The court directed the trustee to submit the entire
dispute to arbitration before industry experts as required
by our client's contract.
In National Union Fire Insurance
Co. of Pittsburgh, Pa. v. Younger Brothers, Inc., 2001
WL 669042 (S.D.N.Y. 2001), the United States District Court
for the Southern District of New York granted our client's
motion to compel arbitration of a payment dispute. The court
rejected assertions that the arbitration agreement was not
enforceable or that the insured was not subject to the jurisdiction
of the court, holding instead that the arbitration clause
should be enforced. As in Transport, the Younger court
held that the parties entered into a valid agreement to arbitrate,
and the Federal Arbitration Act preempted state law, and the
court directed the parties to submit the entire dispute to
arbitration before industry experts, as required by the contract.
In Welltech, Inc. v. National
Union Fire Insurance Co. of Pittsburgh, Pa., 749 N.Y.S.2d
415 (A.D. 1st Dept. 2002), the Appellate Division affirmed
a holding of the New York County Supreme Court denying a motion
to stay arbitration. In this case the state court also upheld
the supremacy of the Federal Arbitration Act over state law,
requiring that issues concerning the statute of limitations
be decided by industry experts pursuant to our client's contract. |