Arbitration Agreement Not Broad Enough to Cover Dispute Arising from Unrelated Contract, Kan. Federal Judge Rules

TOPEKA, Kan. — A Kansas federal judge has refused to compel arbitration of a dispute arising from a contract that does not contain an arbitration clause, finding that the arbitration clause in the parties’ purchase and sale agreement is not broad enough to encompass the dispute.

In a Nov. 17 order, Judge Julie A. Robinson of the U.S. District Court for the District of Kansas further found that the two contracts are not sufficiently related to warrant arbitration under the PSA’s clause.

Pursuant to a 2008 PSA, Blue Tip Liberty LLC purchased half of Colt Energy Inc.’s interest in …