11th Circ. OKs CBD Supplier's $4M Arbitration Award

Law360 (April 14, 2020, 5:55 PM EDT) -- The Eleventh Circuit on Tuesday affirmed an arbitration tribunal's $4 million award issued to an El Salvador-based CBD oil supplier over its dispute with a distributor, saying in an unpublished opinion that the tribunal's award was appropriate.

The appellate panel rejected Florida-based distributor Earth Science Tech Inc.'s argument that Cromogen Biotechnology Corp.'s claims against it were beyond the scope of an arbitration clause in a 2014 distribution agreement between the companies. Cromogen had claimed that Earth Science breached the agreement by canceling it and not paying half the amount owed for two shipments of CBD oil.

"We must defer to the...

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