Legal Topics

Arbitration — Arbitrable issues — Limited liability companies — Direct/derivative claims — Motion to compel arbitration of plaintiff’s direct claim seeking accounting against LLC in which plaintiff purchased membership unit is granted

Apr 17th, 2021 in News by admin

Arbitration — Arbitrable issues — Limited liability companies — Direct/derivative claims — Motion to compel arbitration of plaintiff’s direct claim seeking accounting against LLC in which plaintiff purchased membership unit is granted — Membership agreement contains clause requiring arbitration of any dispute arising out of, or relating to, membership; defendants did not waive right to arbitrate; and arbitration agreement, which incorporated commercial rules of AAA, demonstrated intent to have arbitrator rather than court decide issues of arbitrability — Shareholder derivative actions — Arbitration agreement entered into by nominal derivative plaintiff may not be relied upon to compel arbitration of derivative claims brought by nominal plaintiff where company on behalf of which claims are brought is not party to any agreement to arbitrate claims against its officers, directors or managers — Motion to compel arbitration of derivative claims is denied