How many times have you heard someone say, "Commencing arbitration is as simple as sending a demand to the other side and paying the applicable fees or costs"? Unfortunately, nothing could be farther from the truth.
Right to Arbitrate All Pending Disputes?
The parties agreed to arbitrate, but did they expressly agree to resolve any and all disputes? Arbitration provisions are classified as being either broad or narrow in scope. A broad clause includes both contract and tort claims, whereas a narrow clause typically only addresses contractual disputes. Courts have routinely held that both contract and tort claims are covered by the phrase "arising out of or relating to." A recent court, however, found that the phrase "arising under" did not refer to related tort claims. See Cape Flattery Ltd. v. Titan Maritime, LLC, 647 F.3d 914 (9th Cir. 2011).