Arbitration Clause Is Unenforceable Because the Named Arbitrator Is No Longer Available
Arbitration
November 16, 2011
The title of this post tells much of the story regarding the decision in Geneva-Roth, Capital, Inc. v. Edwards, ___ N.E.2d ___ (Ind. Ct. App. 2011), Cause No. 49A02-1101-PL-43. But the decision in this case did more than just find an arbitration clause unenforceable, it established new law with regard to the issue of what to do when a contractually identified arbitrator cannot act as an arbitrator.
Lessons:
The title of this post tells much of the story regarding the decision in Geneva-Roth, Capital, Inc. v. Edwards, ___ N.E.2d ___ (Ind. Ct. App. 2011), Cause No. 49A02-1101-PL-43. But the decision in this case did more than just find an arbitration clause unenforceable, it established new law with regard to the issue of what to do when a contractually identified arbitrator cannot act as an arbitrator.
Lessons:
- An arbitration agreement is void as impossible if the term of the agreement that is impossible to perform is integral to that agreement.
- If an arbitration agreement names a particular arbitrator in mandatory terms, then this is an integral term to the arbitration agreement.
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