MTI paid for the fabric by two Merchant's Bank Letters of Credit, which were released upon receipt of defendant Vano Haroutunian's certifica tion with respect to the fabric. After MTI resold some of the fabric to its customers, it learned that it was less than 100 percent linen and had not been made in Czechoslovakia. MTI commenced this action and, prior to any discovery, the parties entered into settlement negotiations. The parties' attorneys eventually executed a settlement agreement, which was dated September 12, 1997. Plaintiff now moves to amend the complaint to add claims based on the failed settlement agreement and the returned checks, and to add defendants purportedly connected to the subject transactions.
Defendants cross-move to dismiss the complaint, or, in the alternative, for summary judgment.
Defendants also move to compel arbitration of the issues raised in the complaint and in the proposed amended complaint. The threshold issue is whether this dispute should be arbitrated. Plaintiffs deny that such an agreement was ever entered into, and defendants havefailed to offer evidence of such an agreement. Defendants submit a blank, undated sales order form that includes an arbitration agreement on the back. Because the blank form is not evidence of an arbitra tion agreement between the parties, the motion to dismiss the complaint and compel arbitration is denied.