SI V, LLC v. FMC Corp.

ORDER GRANTING DEFENDANT’S MOTION TO COMPEL ARBITRATION AND STAY FURTHER JUDICIAL ACTION ON PLAINTIFFS’ CLAIMS; SETTING CASE MANAGEMENT CONFERENCE

I. INTRODUCTION

This suit arises out of a contract for sale of real property between Defendant FMC Corporation (“FMC”), the sellers, and Plaintiffs Sobrato Interests IV, LLC and Sobrato Interests V, LLC, the'purchasers. Closure on the contract for sale has not occurred for reasons that are in dispute, and Plaintiffs have filed this action asserting several claims. Pursuant to an arbitration agreement between FMC and Plaintiffs, FMC has filed a motion to compel arbitration and stay further judicial action on Plaintiffs’ claims. Plaintiffs oppose arbitration and contend that the arbitration agreement is unenforceable. Based upon all the papers filed to date and the undisputed evidence, FMC’s motion to compel arbitration and stay judicial action is GRANTED in part and DENIED in part.

II. BACKGROUND

FMC and Sobrato Interests IV, LLP (“Sobrato LLP”) entered into a contract, effective April 30, 2001 (the “Agreement”), for the purchase and sale of 75 acres of real property (the “Property”), owned by FMC in San Jose and Santa Clara,…