Questions On The Law Of Arbitration

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I. 9 U.S.C. § 202 Requires the Court to Submit This Matter to Arbitration. The thrust of Plaintiffs’ opposition is couched on the premise that the Plaintiffs “cannot be forced to submit to arbitration because it did not agree to arbitrate claims arising out of HK’s overarching fraud encompassing the entire business relationship between the two entities.” (Dk. 13, at p. 13.) Stated differently, Plaintiffs assert that they “cannot be compelled to arbitration, because Plaintiffs did not agree to arbitrate claims arising out of the parties’ business relationship as a whole.” (Dk. 13, at p. 2). To the contrary, however, the Plaintiffs did expressly agree to arbitrate any claim that “arise[s] out of or releat[es] to” the supply agreement.”…show more content…
(Dk. 13, p. 14); and 2) the allegations in the complaint fall outside of the scope of the arbitration clause. (Dk. 13, p. 16). Neither position is availing. In support of their position, Plaintiffs reach the ipsi dixit conclusion that in determining the application of the arbitration provision at issue, the applicability of the Convention of the Recognition and Enforcement of Foreign Arbitral Awards is irrelevant. (Dk. 13, p. 13). This position belies mandatory authority applied in this Circuit—and indeed, this Court—that expressly sets forth the standard to be applied when determine the threshold question of arbitrability. See Aggarao v. MOL Ship Mgmt. Co., LTD., 675 F.3d 355, 366 (2012); In re Titanium Dioxide Antitrust Litig., 962 F. Supp. 2d 840, 849 (D. Md. 2013) (quoting Aggarao). Indeed, Aggarao, expressly sets forth the standard to be applied in determining the arbitrability of a dispute, or what the Plaintiff deem the “first principle.” As such: In deciding whether to enforce a foreign arbitration clause implicating the Convention Act, courts have emphasized four jurisdictional factors: that (1) there is an agreement in writing within the meaning of the Convention; (2) the agreement provides for arbitration in the territory of a signatory of the Convention; (3) the agreement arises out of a legal relationship, whether contractual or not, which is considered commercial; and (4) a party to the agreement is not an
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