C.A. 2nd;
B271718

The Second Appellate District affirmed in part and reversed in part a judgment. The court held that a party to an arbitration agreement does not breach that agreement by initially filing suit in court and seeking a preliminary determination of the issue of arbitrability.

Sargon Enterprises, Inc. retained the law firm of Browne George Ross LLP (BGR) to represent it in litigation. The parties' retainer agreement included a clause mandating arbitration of any disputes. Following the conclusion of the litigation, Sargon sued BGR for malpractice. BGR moved to compel arbitration. Over Sargon's opposition, the trial court granted BGR's motion. In the ensuing arbitration, the arbitrator denied Sargon's malpractice claim, finding it had executed a binding release of any and all claims. The arbitrator found in favor of BGR on its claim of breach of contract, finding Sargon breached the parties' arbitration agreement by filing its complaint and thereafter opposing BGR's motion to compel arbitration. The court awarded BGR damages of $200,000. The trial court affirmed the arbitration award and entered judgment.