Mississippi Supreme Court Compels Arbitration Under Choice of Law Analysis

Fifteen years after founding On-Site Fuel Service, Inc., Gregory Nethery entered into a deal with CapitalSouth and Harbert granting them an ownership interest in the company. As part of that agreement, Nethery entered into a Stockholder Agreement which included choice of law and arbitration provisions. Five years later Nethery filed suit against the two companies for breach of fiduciary duty, corporate freeze out, unjust enrichment, constructive trust, civil conspiracy, negligence and mismanagement. The Defendants filed a motion to compel arbitration pursuant to the Stockholder Agreement, which was granted by the Rankin County Circuit Court. Nethery appealed arguing Delaware law applied and under that state’s law, the arbitration clause was not applicable. Find out why the Mississippi Supreme Court disagreed.