Opinion ID: 698355
Heading Depth: 2
Heading Rank: 2

Heading: 1977 Contracts & 1988 Agreement: Bad Faith and Fraud.

Text: 36 Similar principles apply to BSI's fourth claim (breach of the duties of good faith and fair dealing) and its fifth claim (fraud), each of which is pleaded in terms of obligations under the 1977 Contracts and under the 1988 Agreement. To the extent that these claims arise out of or relate to the 1977 Contracts, the allegations will be grist for the arbitration. To the extent that these claims seek relief under the 1988 Agreement for conduct that does not arise out of or relate to the 1977 Contracts, they are not arbitrable. Once the district court compelled arbitration of the claim for wrongful termination of contract, the court had no need to edit the fourth and fifth claims so that they would be arbitrable insofar as they pertain to the 1977 Contracts, but not as they seek relief under the 1988 Agreement. The court's refusal to order arbitration of these claims cannot be deemed an evidentiary preclusion of allegations contained therein that plead particulars of the wrongful termination of contract. 37