COURT DENIES MOTION TO COMPEL ARBITRATION FINDING AMBIGUITY AS TO WHETHER ARBITRATION WAS EXCLUSIVE REMEDY
On April 14, 2009, the United States District Court for the District of New Jersey denied Consolidated Services Group’s motion to compel arbitration under the terms of its agreement with plaintiff, Creative Marketing Alliance. The Court determined that although the contract contained an arbitration clause, the agreement was ambiguous as to whether arbitration was the exclusive remedy for all disputes. The Court noted that the agreement acknowledged the possibility of litigation by vesting the District of New Jersey with “sole and exclusive jurisdiction to resolve and interpretation, construction, breach, dispute or other controversy arising” out of the agreement. The arbitration provision failed to state “in clear and unmistakable terms” that the parties elected arbitration for all disputes and waived their right to litigation. Creative Mktg. Alliance, Inc. v. Consolidated Servs. Group, Inc., Case No. 09-518 (D. N.J. April 14, 2009).
This post written by John Black.
