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Arbitration Agreements

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Arbitration is the most popular choice for dispute resolution in multinational commercial agreements.[1] At times, relevant arbitration clauses provide that arbitration proceedings can only be initiated after a failed attempt at an alternative dispute resolution (“ADR”). There is a broad variety of specific ADR mechanisms provided for in such multitier dispute resolution clauses. Nevertheless, a matter that commonly arises in disputes subject to such multitier dispute resolution clauses is the mandatory nature of such pre-arbitral…

In the Matter of the Application of New York State Department of Health, Petitioner, For an Order, Pursuant to Article 75 of the CPLR, staying an arbitration commenced by Rusi Technology Company, Limited, Respondent, 2022 NY Slip Op 50041(U) (Sup. Ct. Albany County Jan. 25, 2022 In a special proceeding brought before a trial level court in New York, the New York State Department of Health (“DOH”) moved for an order and judgment permanently staying an…

The case of T v W[1] reinforces the important principle that bills of exchange have a legal life of their own, separate from the underlying contract. They usually do not fall within the scope of an arbitration clause in the underlying contract unless there is a clear and express indication that they do. Factual background Under a Loan Agreement, P agreed to lend D HKD 5 million. P advanced the money and D drew a…

Setty v. Shrinivas Sugandhalaya LLP, No. 18-35573 (9th Cir. Jan. 20, 2021) [click for opinion] In 1999, brothers Balkrishna and Nagraj Setty signed a Partnership Deed agreeing to joint ownership interest of their late father’s incense manufacturing company Shrinivas Sugandhalaya (“SS”). Soon the brothers created competing incense manufacturing companies in separate Indian cities, Balkrishna in Bangalore (“SS Bangalore”) and Nagraj in Mumbai (“SS Mumbai”). Plaintiff-Appellees Balkrishna and SS Bangalore sued SS Mumbai and its U.S.…