Appellate Practice Attorney serving New York, NY
You can sue your brother for the money, but, unless you have an arbitration agreement with him that you haven't mentioned, you have no basis to go to arbitration. You can't force someone to arbitrate unless they agree to do so.
Your case has two possible issues I can see, but they are not insoluble. First, since your agreement was that he was to repay you when he got a settlement, and he never got one, he can argue that he has no obligation to repay you yet. Normally, where the time for performance of a contract is contingent on some outside event which never occurs, the law will imply a reasonable time period for performance. 7 years is long enough to wait, so I think you'll be ok here. Another issue is the statute of limiations. Lets assume the Court says that 2 years was a reasonable time, and he breached by not paying you 5 years ago. That might be beyond the statute of limitations (the contract statute of limitations in NY is 6 years, but I'm not sure what it is in Connecticut.) With no definite time set for repayment, however, this probably will not be an issue.
Of course, I have only heard your side of the story. Your brother will likely take issue with what you're claiming. For example, he may claim that you didn't loan him the money, but just paid him back for something, or invested with him in a business venture which didn't succeed. With no documentation, it may come down to your word against his.
Answered on Oct 07th, 2014 at 9:29 AM