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The United States District Court for the Southern District of New York compelled arbitration of a dispute between parties, noting that even collateral matters are arbitrable under a broad arbitration agreement.
In Polesuk v. CBR Systems, Inc., No. 05 CV 8324(GBD), 2006 WL 2796789 (S.D. N.Y. Sept. 29, 2006), Polesuk brought an action against CBR, who Polesuk had contracted with to preserve placenta cord blood. Polesuk also brought claims against Quick, the courier who was responsible for transporting the cord blood.
CBR had contracted with Quick to transport cord blood. In this case, the cord blood was destroyed in transport. In the action brought by Polesuk, CBR asserted cross-claims against Quick.
Pointing to an arbitration clause in the Service Agreement between them, Quick petitioned the Court to compel arbitration of CBR’s cross-claims. CBR claimed that the dispute was not covered by the arbitration agreement because the dispute over the damaged cord blood did not arise under the Quick/CBR agreement. However, the Court disagreed with CBR and compelled arbitration of its cross-claims against Quick.
The Court noted that the arbitration agreement had broad language regarding disputes covered by the agreement, and “[w]here the arbitration clause is broad, there arises a presumption of arbitrability and arbitration of even a collateral matter will be ordered if the claim alleged implicates issues of contract construction or the parties’ rights and obligations under it.” Louis Dreyful Negoce S.A. v. Blystad Shipping & Trading Inc., 252 F.3d 218, 224 (2d Cir. 2001).
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