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Michael-Curry Co. v. Knutson Shareholders

Minnesota Supreme Court
449 N.W.2d 139 (1989)


Facts

Michael-Curry Co. (Michael-Curry) (plaintiff) entered into a contract with Knutson Shareholders (Knutson) (defendant). The contract contained an arbitration clause stating that “any controversy or claim arising out of, or relating to, this Agreement, or the making, performance, or interpretation thereof, shall be settled by arbitration.” Michael-Curry brought suit in Minnesota state court against Knutson alleging fraud in the inducement, or fraud in the making of the contract. Knutson argued that a claim of fraud in the inducement should not be subject to arbitration because the parties’ arbitration clause did not state that it applied to fraud in the inducement claims. The trial court agreed and held for Knutson. The appellate court reversed, holding that the arbitration clause in the parties’ agreement was sufficiently broad to comprehend that the issue of fraud in the inducement be submitted to arbitration. Knutson appealed.

Rule of Law

Issue

Holding and Reasoning (Keith, J.)

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