Mo. Federal Judge Sends Arbitrability Question to Arbitrator

ST. LOUIS — An arbitrator should decide the question of whether the parties to various individual franchise agreements are required to individually, rather than collectively, arbitrate a dispute with Medicine Shoppe Inc., a Missouri federal judge has ruled. Medicine Shoppe International Inc. v. Edlucy Inc., No. 4:12-161 (E.D. Mo.).

Judge Charles A. Shaw of the U.S. District Court for the Eastern District of Missouri held that the parties agreed to submit such questions to an arbitrator by incorporating the Commercial Arbitration Rules of the American Arbitration Association into their agreements. The current version of AAA Rule 7(a) provides arbitrators with …