COURT HOLDS TERMS OF ARBITRATION AGREEMENT REQUIRES PARTIES TO ARBITRATE DISPUTES ARISING UNDER SUBSEQUENT AGREEMENTS
General Motors stripped franchisee Glen West of his stock and removed him as president and operator of one of its dealerships because West was allegedly self dealing and failing to keep proper records. West filed an action in state court seeking an injunction preventing General Motors from disposing of his dealership and an order reinstating him as president. General Motors removed the case to federal court and subsequently moved to compel arbitration, citing an arbitration agreement that the parties had executed when they entered into their first stockholders’ agreement in 2008. West argued that his claims were governed by a 2010 dealer sales and services agreement, and a 2010 stockholders agreement, both of which did not incorporate or reference the terms of the arbitration agreement. The court, however, compelled arbitration, finding that the parties had agreed to arbitrate any claim arising from any other agreement they entered into “whether executed before or after this Arbitration Agreement.” West v. Gen. Motors LLC, Case No. 3:11-00819 (USDC D.N.J. June 7, 2011) motion for reconsideration denied (Aug. 5, 2011).
This post written by Ben Seessel.
