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Prima Paint Analysis

Decent Essays

In the instant action, there is no colorable argument that fewer than all Plaintiffs cannot be compelled to arbitrate. Indeed, Plaintiffs—by their own account—all function interchangeably; thus critically undermining their claim that the arbitration provision cannot be enforced against all of them. (Dk. 1, pp. 1 n.1, at 7-9 (“Plaintiffs will be referred to collectively as “XALT” . . . “XALT and HK conduct Critical Negotiations”). Moreover, all the Plaintiffs participated in intricate trans-pacific negotiations, and all the Plaintiffs were intended to benefit from the agreement. While the quantum of evidence necessary to establish the consent required to enforce an arbitration under 9 U.S.C. § 202 is exceedingly minimal. The degree of involvement—as …show more content…

5-1, p. 32)—is similarly “broad enough to encompass [Plaintiffs’] claim that both execution and acceleration of the consulting agreement itself were procured by fraud.” Prima Paint, 388 U.S. at 406. Curiously, Plaintiffs ask this Court to undertake a Prima Paint analysis while declining to refer it to the contractual language at issue. Rather, Plaintiffs petition this Court to entertain the tautological argument that this Court must try the issue of Defendants’ alleged fraudulent conduct to assess whether it “relates to” the supply agreement. The sort of analysis advanced by the Plaintiffs is precisely the analysis that the Congress and subsequent judicial authorities have admonished, and would undermine “the federal policy favoring arbitration, and [resolving] ambiguities as to the scope of the arbitration clause itself . . . in favor of arbitration.” Aggarao, 675 F.3d at 368 (quoting United States v. Bankers Ins. Co., 245 F.3d 315, 319 (4th Cir. 2001)); Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 631 (1985) (the strong policy favoring arbitration “applies with special force in the field of international

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