2014 COA 19
Colo. Ct. App.2014Background
- Marital dissolution in 2007; separation agreement divides property, debt, maintenance, and attorney fees.
- Husband agreed to pay wife $4 million, in installments of at least $40,000/mo for 59 months, with the balance due by Dec 20, 2011.
- Husband entitled to reimbursement for selling-related expenses and to apply sale proceeds toward the amount owed to wife.
- Section 10.18 provides broad dispute resolution: mediation, then arbitration under Colorado law if mediation fails.
- When close to the final payment, unresolved terms of the final payment led husband to seek mediation/arbitration; wife objected, arguing section 10.8 governs law/jurisdiction; district court ordered mediation/arbitration; arbitrator issued award; wife moved to vacate; court denied and confirmed the award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the final payment dispute arbitrable under section 10.18? | Dorsey argues the dispute falls within the arbitration clause. | Dorsey contends the dispute is not arbitrable may be moot or outside scope? (implied) | Yes, arbitrable under broad 10.18 language. |
| Does section 10.8 limit or override the arbitration clause? | Wife asserts 10.8 governs law/jurisdiction and supersedes arbitration. | Husband argues 10.8 does not preclude arbitration when 10.18 is broader. | No; 10.8 does not supersede the arbitration clause and is reconcilable. |
| Did the arbitrator exceed authority by interpreting the separation agreement? | Wife claims arbitrator misread the agreement. | Husband contends arbitrator acted within the scope to resolve the dispute. | Arbitrator within authority; merits not reviewed on appeal. |
Key Cases Cited
- Lane v. Urgitus, 145 P.3d 672 (Colo.2006) (arbitration favored; de novo review of arbitration existence and scope)
- In re Marriage of Popack, 998 P.2d 464 (Colo.App.2000) (broad arbitration of marital disputes; doubts resolved in favor of arbitration)
- Bank Julius Baer & Co., Ltd. v. Waxfield Ltd., 424 F.3d 278 (2d Cir.2005) (forum clause not inconsistent with arbitration; interpret to permit arbitration)
- Ahluwalia v. QFA Royalties, LLC, 226 P.3d 1093 (Colo.App.2009) (forum selection clause does not nullify broad arbitration clause within same contract)
- Glencore Ltd. v. Degussa Engineered Carbons L.P., 848 F.Supp.2d 410 (S.D.N.Y.2012) (forum selection and arbitration can be reconciled within same contract)