Recent Developments in Dispute Resolution
Willamette University, College of Law
Center for Dispute Resolution

December 3, 2006 - December 9, 2006
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THIS WEEK:

1. Arbitration: Court holds that a motion to stay litigation must be brought in a timely manner at the inception of a dispute. (S.D. Fl.)

2. Arbitration: Daughter of plaintiff not required to arbitrate her claim because she did not consent to arbitration and was
not a third-party beneficiary of the contract. (Miss.)

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Arbitration: Court holds that a motion to stay litigation must be brought in a timely manner at the inception of a dispute. (S.D. Fl.)

Triplecheck, Inc. v. Creole Yacht Charters Limited (S.D. Fl., Dec. 05, 2006)

Triplecheck and Creole entered into a relationship, during which several vessels and a Triplecheck yacht sank. The parties had
entered into a contract containing an arbitration clause. Triplecheck brought suit in the Southern District of Florida based on
diversity jurisdiction. Substantial discovery had occurred, including the deposition of four witnesses, mediation, and a summary
judgment before the court. One witness stated that an agent of Creole signed the contract. Upon learning the signor was an agent
of Creole, Triplecheck then asked for a motion to compel arbitration. The court denied the motion for three reasons. One, Triplecheck
failed to cite any authority for their theory. Two, Triplecheck should have asked for arbitration at the onset of litigation and then asked
for discovery from the arbitrator. Third, Triplecheck had waived the right to arbitrate when they did not motion the court prior to
discovery. If the court granted the motion, the court would be forced to reopen discovery to allow Creole to counterclaim. The motion
was denied after the court held a motion to stay litigation must be brought in a timely manner at the inception of the dispute. (VS)

Full Opinion available online at Westlaw.

Arbitration: Daughter of plaintiff not required to arbitrate her claim because she did not consent to arbitration and was
not a third-party beneficiary of the contract. (Miss.)

Adams v. Greenpoint Credit, LLC, WL 3513562 (Miss., Dec. 7, 2006)

In 1998, Eddie Adams entered into a contract with GreenPoint Credit, LLC to fund the purchased of a mobile home. Adams’ contract with
GreenPoint contained an arbitration clause. In 2001, GreenPoint allegedly made an unauthorized withdrawal from a joint bank account
belonging to Adams and his daughter Beth Brown. Adams and Brown filed several charges against GreenPoint in Mississippi State
Court emanating from the unauthorized withdrawal. GreenPoint moved to compel arbitration. The trial court granted GreenPoint’s motion
and ordered arbitration of Adams and Brown’s claims. Adams and Brown appealed. The Mississippi Court of Appeals affirmed the order
to arbitrate Adams’ claims, but reversed the order to arbitrate Brown’s claims. The appeals court reasoned that Brown was not required to
arbitrate because she did not consent to arbitration nor was she a third-party beneficiary of the contract between Adams and GreenPoint.
GreenPoint appealed. The Supreme Court affirmed the Court of Appeals’ judgment. The court ordered arbitration of Adams’ claims and
reaffirmed the appeals court’s finding that Brown was not bound to arbitrate her claims. (MT)

Opinion available online at:
http://www.mssc.state.ms.us/Images/Opinions/CO38141.pdf

Fall Editor: Whitney Holcombe
Faculty Advisors: Richard Birke/A. Lee Jordan

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