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Arbitration agreement language indicating that "any or all disputes relating to" a promissory note extension agreement is sufficient in scope to include a dispute arising over the original promissory notes, a federal court in New York held.
In Anderson v. Docuport, Inc., slip copy, No. 06 CIV. 3069, 2007 WL 485342 (S.D.N.Y., Feb. 13, 2007), Anderson and others held promissory notes owed by Docuport. Docuport defaulted on the notes. Subsequently, Anderson entered into two extension agreements related to the original promissory notes. Docuport moved to dismiss and to compel arbitration based on arbitration agreements contained in the extension agreements.
The Court rejected Anderson's argument that disputes regarding the promissory notes were not arbitrable because the clause did not make an express reference to the promissory notes and thus applied only to the extension agreements. It is not necessary for the arbitration clause to specifically refer to each dispute which will be arbitrable.
This arbitration clause allowed for arbitration of the "entire subject matter of any and all disputes relating to or arising under this Agreement...." The Court held that the extension agreements were related to the promissory notes. Further, the merger clause contained within each extension agreement made them part of an overarching agreement that included the right to arbitrate.
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