FORT LAUDERDALE -- A Florida company hopes the U.S. States District Court for the Southern District of Florida will find an agreement to arbitrate void after the company was accused of abruptly ending a contract settlement.
Crestron Latin America, a distributor of electronics in that region based in Davie, Florida, filed the lawsuit in the district court after defendant, Som Maior filed an arbitration in Brazil following Crestron’s decision to end their business relationship.
Crestron and Som Maior went into partnership after Crestron asked Som Maior to be its sole distributor for its residential dealers in Brazil.
Apparently, the two parties had different ideas on how long the partnership would last as Crestron said the contract was based on Som Maior’s alleged expectation the companies would be in business together long term. Som Maior subsequently asked for $3.9 million in damages, alleging the abrupt and unexpected ending of the contract caused it to suffer major losses. Crestron argued that the contract is an at-will agreement.
Crestron seeks to file a declaration that the agreement to arbitrate is irrelevant “as it requires arbitration to be conducted pursuant to the rules of two separate and irreconcilable arbitral bodies and is, therefore, ambiguous and irreconcilable,” according to the lawsuit. Crestron also asked the court order a stay concerning the arbitration and declare Son Maior’s request for arbitration as unenforceable.
Crestron petitioned the court to determine that it is not obligated to undergo arbitration in Brazil, and asked for preliminary and injunctive relief, plus attorney fees and other legal costs.