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More Roofing Inc. v. Scrivens

2001 'Sphere' Ruling Noted in Compelling Arbitration of Fraud, Contract Breach Claims

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MEMORANDUM & ORDER Plaintiff More Roofing, Inc. (“MRI”) brings this action against its former employees, Defendants William Scrivens and John Bregman, and against a subcontractor, Defendant Frank Cyrwus, Inc. (“FCI”), as well as Individual Defendant Frank Cyrwus.1 MRI claims that Scrivens and Bregman fraudulently induced the company to enter into contracts with FCI and two other subcontractors in which they had an undisclosed ownership interest. MRI also alleges that FCI participated in the fraudulent inducement, and that FCI breached those contracts. Before the court is FCI’s Motion to Compel Arbitration, based on its agreements with MRI. (See FCI’s Mem. in Sup. of Mot. to Compel Arbitration (“Mem.”) (Dkt. 16); P1.’s Mem. in Opp. (“Opp.”) (Dkt. 16-6); FCI’s Reply (“Reply”) (Dkt. 16-18).) For the following reasons, FCI’s motion is GRANTED and the claims against it are STAYED pending the completion of arbitration.2 I. BACKGROUND A. Facts In January 2016, MRI, a New York corporation, hired Scrivens to be manager of its New Jersey office. (Amend. Compl.

7, 22-23.) The same month, at Scrivens’s behest, MRI hired Bregman to work with him. (Id.

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