National Credit Union Admin. Bd v. Goldman, Sachs & Co., No. 14-312 (2d Cir. 2014)Annotate this Case
Goldman appealed from the denial of its motion to compel arbitration of a suit brought against it by NCUA. The court concluded that NCUA successfully repudiated the Cash Account Agreement (CAA), including the arbitration provision. The court rejected Goldman's arguments that NCUA's repudiation of the CAA in this case should not be understood to encompass repudiation of the arbitration clause contained in the overall agreement where 12 U.S.C. 1787(c)'s grant of authority to NCUA in its role as liquidating agent to repudiate contracts includes authority to repudiate arbitration agreements. In this case, NCUA's lack of awareness of the CAA, and its consequent delay in repudiating it, cannot be deemed unreasonable. Once Goldman brought the CAA to NCUA's attention, NCUA repudiated the contract within nine days. The court rejected Goldman's challenge to the timeliness of the repudiation given NCUA's excusable unawareness of the CAA until Goldman disclosed it. Accordingly, the court affirmed the district court's order denying arbitration.