Opinion ID: 698355
Heading Depth: 2
Heading Rank: 4

Heading: Trade Libel.

Text: 41 A slightly different result obtains in respect of BSI's claim for trade libel of its installer network. Here, BSI alleges that, both before and after the termination of the 1977 Contracts, C & A impugned the workmanship of BSI's installers, as part of its effort to displace BSI's role under the Contracts in respect of BSI's customers and geographic regions. We conclude that this tort claim, at least insofar as it implicates conduct in aid of the termination of the Contracts, is arbitrable. 42 In Genesco, the plaintiff had also asserted a claim of unfair competition, based on its theory that the defendants conspired with one of its employees to destroy its business through the systematic acceptance of overcharges and unmarketable goods. 815 F.2d at 855. We held that this tort claim was arbitrable, reasoning that the claim was not 'wholly independent of the contract', and that [the plaintiff] could not 'avoid the broad language of the arbitration clause by the casting of its complaint in tort.'  Id. (quoting Altshul Stern, 385 F.2d at 159). 43 The same reasoning applies in this case. To the extent that BSI's allegation of trade libel is in respect of conduct by C & A prior to the termination, or as part of C & A's efforts immediately following the termination to consolidate in its hands the contract benefits it had promised BSI, we hold that the tort claim is arbitrable. BSI's allegation, in effect, is that C & A approached BSI's customers and told them that the workmanship of BSI's installers was of a low quality. This clearly alleges conduct that would be wrongful in respect of the subject matter of the 1977 Contracts. Significantly, although the wrongs alleged implicate the contract termination claim, this libel claim could open C & A to liability for additional damages, as BSI asserts in its Statement of Claim. To the extent that C & A's defamation of BSI's installer network caused harm to BSI beyond its loss under the Contracts, C & A may be liable to BSI on the theory (and to the extent) that such conduct relates to the 1977 Contracts. The mere fact that this is a tort claim, rather than one for breach of the Contracts, does not make the claim any less arbitrable. See, e.g., Shearson/American Express v. McMahon, 482 U.S. 220, 107 S.Ct. 2332, 96 L.Ed.2d 185 (1987) (claims for violations of Securities Exchange Act of 1934 and RICO arbitrable); Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985) (antitrust claims arbitrable). 44 The federal arbitration statute requires that we rigorously enforce agreements to arbitrate. Byrd, 470 U.S. at 221, 105 S.Ct. at 1242-43. Libel for commercial purposes that is part of an effort to breach a contract is an arbitrable claim if the contract contains a broad arbitration clause. We therefore vacate that part of the district court's order staying arbitration of this claim. 45