Washington Law Review
Abstract
Plaintiff and defendant entered into a contract containing a provision that "any controversy or claim arising out of or relating to this Agreement... shall be settled by arbitration." A dispute arose and defendant demanded arbitration. Plaintiff brought an action in federal district court to rescind the contract on the ground of fraudulent inducement, moving to stay arbitration. Defendant cross-moved to stay trial pending arbitration. The district court granted defendant's motion and denied plaintiff's. The Second Circuit Court of Appeals affirmed. Held: Unless there is an allegation that the arbitration provision itself was fraudulently induced, an issue of fraudulent inducement of a contract containing an arbitration provision must be arbitrated even if the relief sought is rescission. Prima Paint Corp. v. Flood & Conklin Mfg. Co., 360 F.2d 315 (2d Cir.), cert. granted, 87 Sup. Ct. 202 (1966).
First Page
621
Recommended Citation
anon,
Recent Developments,
Arbitration Clauses and Fraudulent Inducement,
42 Wash. L. Rev.
621
(1967).
Available at:
https://digitalcommons.law.uw.edu/wlr/vol42/iss2/13