Weitz v. Hudson, 262 Va. 224

Summary

The Supreme Court of Virginia held that a dispute concerning the withholding and escrow of partnership-sale proceeds was subject to arbitration under a broad arbitration clause in the limited partnership agreement. The court reversed the denial of the application to compel arbitration and remanded for further proceedings, including determination of whether issues in an amended motion were arbitrable or severable.

Holdings

1. The controversy was subject to arbitration because it was a dispute in relation to the partnership agreement. Resolving the dispute required construction or application of the agreement's reserve-fund provision.
2. The circuit court erred in denying Weitz's application to compel arbitration on that basis.
3. The court would not consider the additional allegations in the amended motion for judgment because they were not before the circuit court when it denied the application to compel arbitration.

Questions Presented

1. Whether Hudson's conversion and misappropriation controversy concerning proceeds from the liquidation of partnership assets was subject to arbitration under the agreement's broad arbitration clause.
2. Whether the circuit court properly denied the application to compel arbitration because Weitz sought to present defenses beyond the defense that he acted within his authority under the partnership agreement.
3. Whether issues raised for the first time in Hudson's amended motion for judgment were properly before the appellate court.

Disposition

reversed_and_remanded