Last year I resolved a case against Domestic Uniform Rental involving its standard contract, which contains a mandatory arbitration clause. On January 22, 2013 the Michigan Court of Appeals, in a case titled Fuego Grill, LLC and Samuel Alvarado v. Domestic Uniform Rental held that courts, not the arbitrator, are able to decide the existence of the contract to arbitrate. If the trial court determines that there is not an agreement to arbitrate (due to fraud in the execution of the contract, as alleged by Mr. Alvarado), the arbitrator loses jurisdiction to hear the case. You can view the entire Court of Appeals holding here. Domestic Uniform Rental sues businesses for breach of its contract, but now will have to make its case in court, rather than an arbitration hearing.
If your business has a dispute with Domestic Uniform, do not hesitate to contact attorney J. Joseph Rossi at Drew, Cooper & Anding.
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