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UNITED STATES 1021
United States District Court, Southern District of Florida, 5 February 2021, Case No. 20-21713-CIV-MARTINEZ/AOR
(Eco Brands, LLC, a Delaware limited liability company, derivatively by and through its member Midas Financial Group, LLC, a Delaware limited liability company v. Eco Brands, LLC)
UNITED STATES 1021
The Court granted a motion to compel arbitration. It held that by selecting the Dominican Chamber of Commerce in their arbitration provision, the parties implicitly incorporated the Arbitration Law of the Dominican Republic and its kompetenz-kompetenz principles in their contract. Hence, issues of arbitrability were to be decided by the arbitrators. The Court denied the arguments that it should nevertheless decide arbitrability under the Panama Convention, and that it should decide arbitrability where the party seeking to compel arbitration was a non-signatory. Finally, the Court found that the claims fell within the scope of the arbitration clause.
The court discusses whether the dispute falls within the wording of the arbitration agreement; and whether claims in tort fall within the scope of the agreement.
The court discusses the principle of competence-competence, including whether the parties “intended to have arbitrability decided by an arbitrator”, and the separability of the arbitration agreement from the main contract.
Multi-party disputes: The court discusses under which conditions non-signatories are covered by an arbitration agreement entered into by another party.