Balar Equipment Corp. v. VT LeeBoy, Inc.

MEMORANDUM *

Plaintiff Balar Equipment (“Balar”) was the exclusive dealer in Arizona for certain LeeBoy, Inc. (“LeeBoy”) products when LeeBoy attempted to terminate Balar as a dealer. Balar resisted, claiming that the termination violated the Arizona Equipment Dealers Act, A.R.S. §§ 44-6701 to 44-6709 (“Act”). When LeeBoy refused to withdraw its termination notice, Balar sued for damages allegedly arising from the termination. LeeBoy countered with a motion to dismiss in favor of arbitration. The district court denied LeeBoy’s motion, holding that the contract between the parties incorporated the Act and thereby excluded the termination dispute from arbitration.

We reverse and remand with instructions.

*689 The controlling contract contains in Section 11 an arbitration provision covering “any dispute, controversy, difference or claim arising out of, relating to or in connection with this Agreement” and requiring the same to be “finally settled by arbitration.”

Balar asserts, however, that Section 12 of the Agreement exempts this termination dispute from the contract’s arbitration provision. Section 12 states,

(emphasis added).

LeeBoy counters that Section 12, which does not…