North Carolina Business Litigation Report

Eleanor B. Johnson Limited Partnership v. Ball, February 14, 2008 (Jolly)(unpublished)

The Court found that an arbitration agreement involved commerce so as to implicate the Federal Arbitration Act, and found the arbitration provision to be enforceable. The principal issue, however, was whether the Court had jurisdiction to award provisional relief. In this case, that meant the appointment of a receiver.

The Court found that it had that power, but denied the remedy. It held that "[t]he appointment of a receiver is a harsh and cumbersome remedy, and is arguably outside the permissible interpretation of the Arbitration provision under the FAA." The Court determined, however, that it would grant a limited preliminary injunction.

Full Opinion

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Mack Sperling
Brooks Pierce, LLP
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