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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41220
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
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I have a company and my client company is in clear breach of

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I have a company and my client company is in clear breach of contract according to my attorney (who is on vacation, hence why I am here :)

The contract has a binding arbitration clause in it. It says: 9.1 "Any dispute arising out of or relating to this Agreement will be finally settled by arbitration before a single arbitrator in accordance with the rules of the American Arbitration Association. Any court with jurisdiction may enter judgment upon the award rendered by the arbitrator. The
arbitration will be held in the City of New York."

Yet there is some conflict - I am assuming, with this article below, which seems to extend protections outside of the arbitration agreement to one party.

it states this: "Advisor (EDIT: me) acknowledges and agrees that, in the event of a breach or threatened breach of this Article VI, COMPANY (edit:them) may be irreparably harmed such that monetary damages will not adequately compensate for its injuries. Notwithstanding the provisions of Section 9.1 of this Agreement pertaining to arbitration, in the event of any breach or threatened breach of this Article VI, COMPANY shall be entitled, in addition to any other rights it may have at law or in equity, to seek a temporary or permanent injunction enjoining and restraining Advisor from continuing such breach. In the event that COMPANY prevails, COMPANY shall also be entitled to the payment by Advisor of all reasonable costs associated with said litigation including reasonable attorney’s fees."

How, if at all - would this effect my case if COMPANY is the breaching party? Does the fact that they request unequal arbitration allowances nullify arbitration?

Thank you for your question. Please permit me to assist you with your concerns.

I do not see the second clause affect you if the other party is the breaching party--the language speaks to a breach on your end. granted, if you file against them, they can use that as an argument that they are now irreparably harmed by your breach, but it is a bit of a stretch because it simply states that in case arbitration does not work AND you are found liable, you are then liable for additional costs and fees, something that they would have to first prove in court. It would not nillify arbitration, it simply means that in case of breach on your end they can go to court for an injunction and stop further injury to themselves. Beyond that the claims would be resolved in arbitration first.

Good luck.

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