The Third Circuit held that parties to an arbitration agreement were still required to arbitrate their dispute even though the chosen arbitration forum no longer was available. Khan v. Dell Inc., 669 F.3d 350 (3d. Cir. 2012) (No. 10-3655). The court found that the language of the arbitration agreement did not indicate the parties’ unambiguous intent to not arbitrate their disputes if the chosen arbitration forum was unavailable. Therefore, the court concluded that it was unclear whether the designation of the arbitration forum was ancillary or was as important a consideration as the agreement to arbitrate itself. Consequently, the district court had to resolve the ambiguity in favor of arbitration and was empowered, under Section 5 of the FAA, to appoint a substitute arbitrator.
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Arbitration compelled despite the designated arbitration forum’s unavailability
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