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A federal court in Connecticut refused to stay a court action pending arbitration because the parties' arbitration agreement specifically excepted the underlying claim.
In GE Commercial Distribution Finance Corp. v. RER Performance, Inc., No. 3:06cv1700 (JBA), 2007 WL 521153 (D. Conn. Feb. 15, 2007), GE brought a replevin action against RER after RER failed to make payments due under the parties' financing agreements.
RER filed a motion for a stay pending arbitration because two of the three financing agreements contained arbitration clauses. However, the arbitration clauses specifically excepted certain claims, including replevin actions, from arbitration.
Accordingly, the Court denied the motion for a stay based on the rule that "[w]here the parties to an arbitration agreement specifically have excepted a certain type of claim from mandatory arbitration, it is the duty of the federal courts to enforce such limitation." Oldroyd v. Elmira Savings Bank, FSB, 134 F.3d 72, 76 (2d Cir. 1998).
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