Last Friday (Sept. 16) a Missouri Federal Judge denied Quixtar’s motion to compel the infamous “Hart Lawsuit” to arbitration. The ruling by District Court Judge Richard E. Dorr could have long-term repercussions for Quixtar by jeopardizing the ironclad BSMAA.
Judge Dorr’s 26-page decision (pdf) is a lot to digest but it’s well worth the effort and doesn’t disappoint. For those with shorter attention spans, the lawBlawg provides a few highlights from the order. What I found most interesting begins on page 23 (pdf):
It is this Court’s opinion that the procedure utilized by Defendants to screen, train and ultimately hand-pick their panel of arbitrators does not come close to passing any reasonable test of fairness and neutrality required for a legitimate arbitration proceeding.
This could be a huge blow to Quixtar’s Business Support Materials Agreement, perhaps opening the door to numerous lawsuits.
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