Court of Chancery Explains When Contract Bars Tort Claims and Arbitration
Posted In Arbitration, Breach of Contract
Flores v. Strauss Water Ltd., C.A. 11141-VCS (September 22, 2016)
This is a great decision on when the provisions of a contract bar tort claims of fraud and tortious interference. Briefly, when the contract speaks to an issue (e.g., expressly permitting certain acts, or imposing no duty to act), a party may not assert a tort claim that would deny the other party the benefit of its bargain. Further, when the contract between two parties selects a judicial forum for dispute resolution, arbitration is not part of the deal even if provided in a collateral contract involving one of those parties, at least not where there are no grounds for binding the non-signatory to the arbitration clause.
Tags: Arbitration, Breach of ContractShare