|
Rejecting a motion to dismiss as a premature claim made prior to fulfilling the terms of a mediation agreement, a federal court in Louisiana stayed litigation to afford the parties an opportunity to submit their claims to non-binding mediation.
In Composite Mat Solutions, L.L.C. v. Big Red Events, Inc., No. 06-9602, 2007 WL 782191 (E.D. La. Mar. 12, 2007), Composite Mat Solutions (CMS) sought payment on an open account of sums allegedly due under a sales distributor agreement with Big Red Events (BRE). CMS argued that mediation would be useless because BRE refused to pay.
However, the Court read the plain language of the distributor agreement to require at least an attempt at non-binding mediation, and urged the parties to undertake such negotiations with good faith. Therefore, the Court stayed the litigation for the six-month period required by the terms of the parties' agreement.
Subscribe to a free weekly update on ADR case law and
legislation
|