Contracts — arbitration clauses

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Wisconsin Court of Appeals

Civil

Contracts — arbitration clauses

The parties’ designation of an exclusive arbitration forum that is no longer available renders the arbitration agreement unenforceable.

“After careful review of the ADR Agreement’s terms and the NAF Rules of Procedure’s provisions, we conclude in this case that the designation of NAF and its rules is integral to the ADR Agreement. The NAF Rules of Procedure, incorporated by reference into the ADR Agreement, are pervasive in that they govern all aspects of the arbitration. The mandatory language designating use of NAF’s rules draws NAF into the Agreement to a degree as integral as the agreement to arbitrate itself. Finding persuasive the approaches taken in Carideo, Carr, Ranzy, Rivera, and Stewart, we conclude that the designation of NAF is integral to the ADR Agreement. As we explain in the next section, in light of the Minnesota consent judgment barring NAF from consumer arbitration, we also conclude that the ADR Agreement ‘fail[s] altogether.’ See Madison Teachers, 285 Wis. 2d 737, ¶12.”

Affirmed.

Recommended for publication in the official reports.

2012AP311 Riley v. Extendicare Health Facilities, Inc.

Dist. IV, Rock County, Dillon, J., Kloppenburg, J.

Attorneys: For Appellant: Fudge, Donna J., St. Petersburg, FL; Scoptur, Paul J., Milwaukee; Scoptur, James P., Milwaukee