Sound Around, Inc. v. Anhui Light Industries International Co., Ltd. and Yoau Electric Co. Ltd.

Summary

The Southern District of New York granted motions by Anhui Light Industries International Co., Ltd. and Yoau Electric Co., Ltd. to compel arbitration of Sound Around, Inc.'s claims arising from alleged kickbacks paid to Sound Around's former buyer. The court held that the parties' sales contracts contained enforceable arbitration agreements covering the claims, and that Yoau's incorporation of CIETAC rules delegated arbitrability questions to the arbitrator. The court denied the defendants' dismissal motions without prejudice and stayed the action.

Holdings

1. Sound Around entered into valid and enforceable agreements with both Anhui and Yoau requiring arbitration of disputes arising from or connected with their sales contracts.
2. The Yoau contracts clearly and unmistakably delegated questions of arbitrability to the arbitrator.
3. Sound Around's claims against Anhui were within the scope of the sales-contract arbitration clauses because the alleged kickbacks arose from and were connected with the sales relationship and contracts.
4. The action must be stayed after the defendants' motions to compel arbitration were granted.

Questions Presented

1. Whether valid and enforceable arbitration agreements existed between Sound Around and each defendant.
2. Whether Yoau's incorporation of the CIETAC arbitration rules clearly and unmistakably delegated arbitrability questions to the arbitrator.
3. Whether Sound Around's claims arising from the alleged kickback scheme fell within the broad arbitration clauses in the sales contracts with Anhui and Yoau.
4. Whether the action should be stayed after the motions to compel arbitration were granted.

Disposition

other