Judge: Kenneth J. Medel, Case: 37-2023-00010559-CU-BC-CTL, Date: 2023-09-29 Tentative Ruling

SUPERIOR COURT OF CALIFORNIA,

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HALL OF JUSTICE

TENTATIVE RULINGS - September 28, 2023

09/29/2023  09:30:00 AM  C-66 COUNTY OF SAN DIEGO

JUDICIAL OFFICER:Kenneth J Medel

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Civil - Unlimited  Breach of Contract/Warranty Motion Hearing (Civil) 37-2023-00010559-CU-BC-CTL SAHEL ONCOLOGY LLC VS LATITUDE PHARMACEUTICALS INC [IMAGED] CAUSAL DOCUMENT/DATE FILED: Motion - Other, 04/20/2023

Defendant LATITUDE PHARMACEUTICALS INC.'s Motion to Compel Arbitration is DENIED. Defendant moves to compel arbitration based upon two identical arbitration agreements in two separate contracts – one entered into in 2019 and another in 2021. The relevant provisions in the contracts are at Sections 6.17 and 17 respectively, where a dispute resolution process is outlined, beginning with negotiation, then mediation and arbitration. But each step uses the word 'may'. With respect to arbitration, the agreements state: 'If a Dispute is not resolved pursuant to negotiation then either party may submit the Dispute for resolution by binding arbitration in accordance with the Rules established by the American Arbitration Association.' Subdivision D of each of the agreements states: 'Effect. Any and all Disputes shall be dealt with in the manner set forth above, rather than by any court litigation.' At best this provision renders the agreements ambiguous. Absent a clear mandatory provision to submit the dispute to arbitration, the Court cannot require it.

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