Court Holds That Amount In Dispute Exceeded Contractual Threshold for Arbitration.

An agreement for the acquisition of companies contained a provision requiring the parties to arbitrate disputes regarding the amount of working capital, but with a $3,000,000 cap. Disputes exceeding that amount were contractually excluded from arbitration. In Bobcat North America, LLC v. Inland Waste Holdings, the Delaware Superior Court rejected rejected a party’s attempt to keep the dispute in arbitration by arguing that interest should not be counted toward the cap, and also that its delivery of a post-dispute check should result in a reduction of the disputed amount. Rejecting these arguments, the court held the matter exceeded the contractual cap and that the court had jurisdiction over the matter.

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