Hawke v. ADK Aquatics LLC a/k/a Adirondack Water Sports a/k/a Lake Placid Water Sports, and Wesley Canny

Summary

The United States District Court for the Northern District of New York considers Defendants’ motion to dismiss and compel arbitration in a negligence action arising from a water-skiing injury. The court concludes that the motion cannot be resolved on the existing evidentiary record because Defendants did not submit admissible evidence concerning execution of the arbitration agreement, and therefore denies the motion without prejudice while addressing the parties’ legal arguments for guidance.

Holdings

1. When a movant expressly seeks an order compelling arbitration, a motion styled in part as a motion to dismiss may be treated as a motion to compel arbitration.
2. The court may not resolve a motion to compel arbitration on unsworn declarations that are not subscribed as true under penalty of perjury, and the proponent must submit admissible evidence concerning execution when formation is disputed.
3. The court, not the arbitrator, must decide whether the parties formed an agreement to arbitrate in the first place.
4. Under New York law, a person may assent to an arbitration agreement through conduct when the terms were presented clearly and conspicuously enough to provide inquiry notice; failure to read the agreement alone does not defeat formation.
5. The motion to dismiss and compel arbitration was denied without prejudice because the parties had not supplied an adequate evidentiary record or sufficiently developed briefing for the court to rule.

Questions Presented

1. Whether defendants' motion to dismiss and compel arbitration should be treated as a motion to compel arbitration.
2. Whether the court could resolve the motion to compel arbitration on the evidentiary record submitted by the parties.
3. Whether the court or an arbitrator should decide the formation of an arbitration agreement.
4. Whether the written agreement's arbitration provision appeared sufficiently clear and conspicuous to support inquiry notice and manifestation of assent under New York law.
5. Whether challenges to the enforceability of the arbitration provision, including duress and incapacity, were adequately directed specifically to the arbitration agreement rather than the contract as a whole.

Disposition

other