The Federal Arbitration Act (the “FAA”) embodies a strong federal policy in favor of arbitration. When the existence of an arbitration agreement is undisputed, any doubts as to whether a claim falls within the scope of that agreement should be resolved in favor of arbitrability. Despite the broad reach of the FAA, a recent decision issued in Salgado v. NYC Medical Practice P.C. d/b/a Goals Aesthetics & Plastic Surgery, 22-CV-06910(LAK)(SN), 2022 WL 17974915 (S.D.N.Y. Dec. 28, 2022) illustrates that claims may bypass arbitration if the agreement providing for arbitration need not be considered to determine if such claims are meritorious… Read more
Southern District of New York Holds Parent Company is Not Bound by Arbitration Agreement with Merger Advisor Engaged by the Target Company
In XTI Aerospace, Inc. v. Chardan Capital Markets LLC, 1:24-cv-6590-GHW, 2025 WL 240973 (S.D.N.Y. Jan. 17, 2025), the Southern District of New York held that a parent company is not bound by an arbitration agreement between a merger target and the target’s merger advisor, even post-merger. In March 2025, Travis J. Mock discussed commercial arbitration clauses with … Read more