Wilder v. Absorption Corp.

Summary

The Supreme Court of Kentucky reversed a Court of Appeals decision granting a writ of mandamus concerning enforcement of an arbitration and forum-selection clause requiring proceedings in Washington. The court held that enforcement would cause manifest injustice and sufficiently deprive the Kentucky plaintiffs of their opportunity to litigate, reinstating the trial court's order requiring binding arbitration in Kentucky. The dissent maintained that the clause was freely negotiated and that mandamus was the appropriate remedy.

Holdings

1. The Court of Appeals erred in granting mandamus because Absorption Corporation failed to show that it lacked an adequate remedy by appeal.
2. The circuit court correctly found that enforcing the Washington arbitration and forum-selection provisions would produce manifest injustice and inconvenience so serious as to deprive Wilder and Kelley of their day in court.
3. The Court of Appeals' decision was reversed and the circuit court's May 29, 2001 order was reinstated, requiring the litigation to be submitted to binding arbitration within Kentucky.

Questions Presented

1. Whether the Court of Appeals properly issued a writ of mandamus to review the circuit court's order concerning the arbitration and forum-selection clauses.
2. Whether Absorption Corporation had an adequate remedy by appeal from the circuit court's order.
3. Whether enforcement of the contractual arbitration and forum-selection provisions would cause manifest injustice by imposing an unreasonable and seriously inconvenient forum on Wilder and Kelley.
4. Whether the circuit court's order requiring arbitration within Kentucky should be reinstated.

Disposition

reversed