Mission Residential, LLC v. Triple Net Properties, LLC

654 S.E.2d 888 (2008)

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Nature of the Case

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Facts

P and Triple (D) entered into a joint venture. P and D agreed to form a limited liability company named NNN/Mission Residential Holdings, LLC (Holdings). They executed an operating agreement wherein disputes that P and D failed to resolve would be submitted to arbitration. D commenced an arbitration proceeding against P, asserting a direct claim for breach of contract and also a derivative claim against P on behalf of Holdings. The arbitrator ruled that D lacked standing to assert the direct claim, but allowed the derivative claim on behalf of Holdings. P brought this action in the circuit court, seeking a declaratory judgment that there was no agreement to arbitrate disputes between Holdings and P, requesting an order to stay the arbitration. The circuit court ruled that the arbitrator had correctly decided the issue of arbitrability. The court entered an order denying the motion to stay arbitration. P appealed.