|
When interference with contract and defamation claims brought by a company against an independent contractor are sufficiently related to a contract containing an arbitration clause, the tort claims should be arbitrated, a Colorado appellate court held.
In Winter Park Real Estate & Investments, Inc. v. Anderson, No. 05CA2773y, 2007 WL 1017611 (Colo. Ct. App. April 5, 2007), Winter Park brought contract and tort claims against Anderson, an independent contractor working for Winter Park. In addition, Ray, the president of Winter Park, brought defamation claims against Anderson.
Winter Park claimed that Anderson committed the tort of interference with contract by encouraging a client to let its listing with Winter Park expire so that Anderson could purchase the property without paying a commission. Additionally, Winter Park alleged that Anderson defamed the company, and Ray alleged that Anderson defamed him as an individual.
Anderson had signed an independent contractor agreement with Winter Park. The agreement contained a broad arbitration clause, and Winter Park asked the court to compel arbitration of all the claims pursuant to this clause.
First, the Court held that Winter Park's interference with contract claim fell within the scope of the arbitration clause because this claim arose out of the same factual allegations as Winter Park's contractual claims against Anderson, which were clearly subject to the arbitration clause.
Second, the Court ordered Winter Park's defamation claims to arbitration as well because the allegations that Anderson said that Winter Park was "unlawful" and "unethical" in conducting business related to the business relationship between Anderson and Winter Park. Additionally, under the independent contractor agreement, Anderson's obligation was to "promote the business" of the company.
Finally, the Court held that Ray's defamation claims against Anderson were not subject to the arbitration agreement because the claim that Anderson defamed Ray in his capacity as an individual, not in his role as president of Winter Park, fell outside the scope of the arbitration agreement.
Subscribe to a free weekly update on ADR case law and
legislation
|