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SERRATO v MCKINLEY CAPITAL MANAGEMENT Click to find out why . . .



Keywords & Phrases
CourtCode: SU, CourtName: Superior Court, District: Third, JudgeName: Dan Hensley, Plaintiff: SERRATO, State: AK Alaska, UniqueCaseRef: AK>SU>195, Arbitration, Contract, Alaska, Fraud, Statute, Mckinley, Arbitration Clause, Agreement, Prima Paint, Inducement, Serrato, Disputes, Arbitration Act, Constr, Validity, Enforcement, Provisions, Favors, Majority, Presumption, Reasons, Language, Justice, Quoting, Injured Party, Uniform Arbitration, Fraudulent Inducement Claims, Supreme Court , ContentID: 120239535

Case Documents
1 1999-11-19 ESTABLISHED IN THE PRE-ARBITRATION ORDER; (5) PROGRESSIVE DID NOT ASSERT THE WORKERS COMPENSATION OFFSET IN ITS AUGUST 22 1997 RESPONSE TO REQUESTS FO
[ see first page and extracted highlights below  ] ItemID: 100038
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Total Documents: 1 document , 6 pages
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1 . ESTABLISHED IN THE PRE-ARBITRATION ORDER; (5) PROGRESSIVE DID NOT ASSERT THE WORKERS COMPENSATION OFFSET IN ITS AUGUST 22 1997 RESPONSE TO REQUESTS FO

EXTRACTED KEY WORDS
CONTRACT
COURT
ALASKA
FRAUD
STATUTE
MCKINLEY
LAW
ARBITRATION CLAUSE
AGREEMENT
PRIMA PAINT
INDUCEMENT
SERRATO
DISPUTES
ARBITRATION ACT
CONSTR
VALIDITY
ENFORCEMENT
PROVISIONS
FAVORS
MAJORITY
PRESUMPTION
REASONS
LANGUAGE
JUSTICE
QUOTING
INJURED PARTY
UNIFORM ARBITRATION
FRAUDULENT INDUCEMENT CLAIMS
SUPREME COURT

IN THE SUPERIOR COURT FOR THE STATE OF ALASKA

THIRD JUDICIAL DISTRICT AT ANCHORAGE

JOSEPH CHARLES SERRATO, Plaintiff,

vs.

McKINLEY CAPITAL MANAGEMENT,

INC., an Alaska Corporation, and

ROBERT B. GILLAM, Defendants.

Case No. 3AN-99-05501 Civil

DECISION

Summary

	Joseph Serrato worked as an independent contractor investment broker for McKinley Capital
ture commissions. He asserts that he gave up his commissions in exchange for a lucrative, long term
ired him 15 months later, Serrato sued, alleging several claims including that McKinley committed

	The employment agreement requires arbitration of all disputes arising "in connection
order arbitration of Serrato's claims. But Alaska's arbitration statute requires the court, not the
contract exists. Because Serrato's fraud claim challenges the validity of the contract, the court

Discussion

	Alaska's arbitration statute requires enforcement of arbitration agreements, unless there is a
SNIPPETS:
  • IN THE SUPERIOR COURT FOR THE STATE OF ALASKA
  • JOSEPH CHARLES SERRATO, Plaintiff,
  • Joseph Serrato worked as an independent contractor investment broker for McKinley Capital
  • When McKinley fired him 15 months later, Serrato sued, alleging several claims including that
  • The employment agreement requires arbitration of all disputes arising "in connection
  • But Alaska's arbitration statute requires the court, not the arbitrator, to decide whether a
  • Because Serrato's fraud claim challenges the validity of the contract, the court must decide
  • When a contract is induced by fraud, the injured party may cancel it.Because Serrato's
  • Alaska's Uniform Arbitration Act is similar to the Federal Arbitration Act and the
  • Courts in these jurisdictions are split on the issue of whether fraudulent inducement claims
  • The U.S. Supreme Court and a majority of state courts hold that the issue must be arbitrated,
  • f the claim is fraud in the inducement of the arbitration clause itself - an issue which goes
  • Prima Paint at 403-04.
  • A majority of state courts apply the Prima Paint rule.
  • Some apply a legal presumption that the parties intended to arbitrate the fraudulent
  • Justice Black, dissenting in the case, called the result "fantastic." He found that
  • Prima Paint at 412.A growing number of state courts have rejected the Prima Paint rule for
  • a textual analysis of the law favors Serrato's position.
  • State, 957 P.2d 1350, 1352 (quoting Matter of Estate of Hutchinson, 577 P.2d 1074, 1075
  • Mercury Constr.
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