9th Circ. Undoes Arbitration Order, Citing 'Sham' Contract

Law360, New York (March 15, 2016, 9:07 PM EDT) -- The Ninth Circuit in a precedential opinion ruled Tuesday that the owners of a failed coffee shop franchise need not arbitrate their claims against an Italian company, saying an agreement their claims stem from cannot be enforced because it was merely a sham to help one of the franchisees obtain a visa.

A three-judge panel voted 2-1 to overturn a California district court’s ruling that compelled ItalFlavors LLC and ItalFlavors San Diego LLC to arbitrate their claims against Casa Del Caffe Vergnano SpA and Caffe Vergnano...
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