Sharif v. Wellness International Network

What is the standard for dismissing a motion to compel arbitration?

more+
less-

The Circuit Court held that when a motion to compel arbitration is made, the Court is required to rule on it first, before proceeding to rule on any other aspect of the case. Sharif, a WIN distributor sued WIN, claiming that it was an illegal pyramid scheme. WIN moved to transfer the proceeding for lack of venue, and later moved to compel arbitration under the arbitration clause contained within Sharif's distributor agreement with the company. The District Court ruled the arbitration motion was superfluous because the motion to transfer venue was already before the court. On appeal, the Seventh Circuit ruled that the district court erred in not ruling on the motion to compel arbitration. The Federal Arbitration Act requires a judge to first consider any motion to compel arbitration before ruling on any other dispositive motions. Further, despite the district judges ruling, the claims of the multiple parties could not be aggregated to defeat the contractually imposed limit of $100,000 for claims subject to arbitration. Such limits only apply to the dollar values of individual claims.

Full case and case summary also available online at: http://www.mlmlegal.com/legal-cases/Sharif_v_WellnessInternationalNetwork.php

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Reference Info:Federal, 7th Circuit, Illinois | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

CONNECT

Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »


Follow Babener & Associates:

Reporters on Deadline

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×