|
A Florida federal court ordered parties to arbitration pursuant to a broad arbitration agreement covering all disputes relating to a loan agreement.
In Gilchrist v. Citifinancial Services, Inc., No. 6:06-cv-1727-Orl-31KRS, 2007 WL 177821 (M.D. Fla. Jan. 19, 2007), Gilchrist filed a complaint against Citifinancial, alleging a variety of torts stemming out of Citifinancial's alleged failure to pay off existing loans on Gilchrist's property.
Gilchrist then brought a motion for voluntary dismissal under Federal Rule of Civil Procedure 41(a)(2) due to unanticipated expenses of litigation. Citifinancial brought a motion to compel arbitration and asked the court, should Gilchrist's motion to dismiss be granted, that she bear the costs of Citifinancial's defense to the action.
The Court first found no reason to deny the motion dismiss; however, it allowed Gilchrist opportunity to withdraw the motion to avoid paying Citifinancial's legal expenses.
Then, the Court held that should Gilchrist decide not to dismiss the case, the parties were to submit their dispute to arbitration because Gilchrist signed an arbitration agreement that broadly covered all disputes relating to the agreement that Gilchrist alleged Citifinancial had breached.
Subscribe to a free weekly update on ADR case law and
legislation
|