Judge Dismisses Kuwaiti Car Dealer’s Suit To Allow New Appeal On Arbitrability

Mealey's (October 26, 2020, 9:01 AM EDT) -- DETROIT — A federal judge in Michigan addressing an issue that is the subject of a circuit split on Oct. 15 dismissed a Kuwaiti car dealer’s complaint for alleged breach of contract and fraud against Ford Motor Co. rather than staying the case under Section 3 of the Federal Arbitration Act (FAA), writing that the majority of cases in the Sixth Circuit support dismissal over a stay when all claims are subject to arbitration and that dismissal would serve “efficiency” by allowing the Kuwaiti company to pursue its “purely legal” appeal challenging arbitrability (Arabian Motors Group W.L.L. v. Ford Motor Company, No. 16-13655, E.D. Mich., 2020 U.S. Dist. LEXIS 191057)....