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Consumer Credit | Georgia Northern
USCA Acknowledgment
USCA Acknowledgment of 35 Notice of Appeal, filed by Jim's Speed Shop. Case Appealed to USCA- 11th Circuit. Case Number 26-13121-J. (pjm)
Contract: Franchise | Puerto Rico
Order on Motion to Dismiss
ORDER granting 7 Motion to Dismiss. The Motion was unopposed. "[A] party seeking to compel arbitration must show (1) that a valid agreement to arbitrate exists; (2) that [it is] entitled to invoke the arbitration clause; (3) that the other party is bound by that clause; and (4) that the claim asserted comes within the clause's scope." Morales-Posada v. Cultural Care, Inc., 141 F.4th 301, 311 (1st Cir. 2025) (cleaned up). Defendant Matco Tools Corporation has established "that a valid agreement to arbitrate exists, that [it] is entitled to invoke the arbitration clause, that [Plaintiffs are] bound by that clause, and that the claim asserted comes within the clause's scope." InterGen N.V. v. Grina, 344 F.3d 134, 142 (1st Cir. 2003). Moreover, by alleging that Plaintiffs filed claims under the arbitration clause, the Complaint essentially concedes there is a valid arbitration agreement that may be invoked in this case, that both parties are bound by the arbitration clause, and that the claims fall within the arbitration clause. Docket No. 1-3 at 3; see Soto-Alvarez v. Am. Inv. & Mgmt. Co. (AIMCO), 561 F. Supp. 2d 228, 231 (D.P.R. 2008) ("Courts have consistently recognized that, given the preference for arbitration embodied in the FAA, arbitration clauses should be interpreted broadly.") (citations omitted). As such, Plaintiffs' claims are hereby DISMISSED WITHOUT PREJUDICE and the Parties are ORDERED to arbitrate these claims in accordance with Section 12.1 of the Agreement, Docket No. 1-20 at 28. Judgment shall be entered accordingly. Signed by Judge Jay A. Garcia-Gregory on 9/8/2026. (ABG)
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