QUESTION

What court remedies are available to me with an arrbitration clause in my shareholder agreement?

Asked on Apr 28th, 2013 on Business Law - New Jersey
More details to this question:
I am in the midst of a partnership dispute. I have been locked, then terminated. I have been asking to review the books and records for several months to determine my value. My shareholder agreement includes an arbitration clause that all disputes be determined by arbitration. It also states that a shareholder has rights to the company books and records. Do I have any civil rights?
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1 ANSWER

Most courts will give enforcement to arbitration clauses, and dismissed complaints filed in court, and refer the disputes to arbitration for resolution, pursuant to the terms of the arbitration clause.  In so far as your "civil rights", I am not sure what you're asking.  Based upon your description of your shareholder agreement, your rights are limited to whatever remedies are available through arbitration.  Does your arbitration clause in the shareholder agreement specify who the arbitrator and/or arbitration service is that will be utilized?  Is there a provision for immediate remedy?  If you are able to demonstrate that there is no adequate remedy for you in the arbitration proceeding, and there is an imminent risk of loss, before any hearing can be had in the arbitration forum, you might (emphasis on might, because it is not sure), be able to get an immediate hearing in court, with an order entered and then a referral to you arbitration for ultimate resolution.  There is, however, no guarantee that a court filing would not be a fruitless and pointless exercise, and one which would cost you a great deal of money.
Answered on Apr 29th, 2013 at 4:59 PM

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