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Masters v. KOL, Inc.

SCCTAPPJuly 1, 2020No. 2017-002259
RemandedKOL, Inc
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Case Details

Status — whether other courts must follow this ruling
Published

Related Laws

No specific laws identified for this ruling.

Claim Types

Breach of Contract

Excerpt

In this breach of contract action, Appellant KOL, Inc. (Dealer) seeks review of the circuit court's order denying its motion to compel arbitration. Dealer argues the circuit court erred by declining to compel arbitration on the ground that Dealer's execution of certain contracts with Respondent Casey Masters (Purchaser) after Purchaser filed this action rendered the parties' April 10, 2017 arbitration agreement moot and unenforceable. We reverse and remand for an order compelling arbitration.

What This Ruling Means

**What Happened** Casey Masters sued KOL, Inc. for breaking their contract. KOL wanted to force the dispute into private arbitration instead of going to court, based on an arbitration agreement the two parties had signed in April 2017. However, after Masters filed the lawsuit, KOL signed additional contracts with him. The lower court refused to require arbitration, saying that KOL's decision to sign new contracts after the lawsuit was filed made their original arbitration agreement invalid and unenforceable. **What the Court Decided** The appeals court disagreed with the lower court and reversed the decision. The court ruled that signing new contracts after the lawsuit began did not cancel out the original arbitration agreement. The case was sent back to the lower court with instructions to force the dispute into arbitration rather than allowing it to proceed in court. **Why This Matters for Workers** This ruling shows that arbitration agreements can be very difficult to escape, even when employers take actions that might seem to undermine them. Workers should carefully consider arbitration clauses before signing any employment contracts, as courts tend to enforce these agreements even in complicated situations where the employer's later conduct might seem inconsistent with the original arbitration terms.

This summary was generated to explain the ruling in plain English and is not legal advice.

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