Citizens of Humanity, LLC v. Applied Underwriters Captive Risk Assurance Co.Annotate this Case
The Supreme Court reversed the ruling of the district court granting Applied Underwriters Captive Risk Assurance Company, Inc.’s (AUCRA) motion to stay a court case filed by Citizens of Humanity, LLC and CM Laundry, LLC (collectively, Citizens) pending arbitration, including arbitration on the issue arbitrability.
Underlying this litigation was a dispute in which AUCRA claimed that it was owed money from Citizens. Citizens filed a complaint against AUCRA in the district court. AUCRA filed a motion to dismiss or, in the alternative, to stay this action pending arbitration. The district court sustained the motion to stay this action pending arbitration. The Supreme Court reversed, holding that Neb. Rev. Stat. 25-2602.01(f)(4) invalidated the delegation provision in the parties’ agreement, which had the effect of referring the issue of arbitrability to the arbitrator and operated to reserve issues of arbitrability for the court to decide. The court remanded the cause for further proceedings, including the enforceability of the remainder of the arbitration provision.