950 Corbindale, L.P. v. Kotts Capital Holdings Ltd. Partnership
This accelerated interlocutory appeal stems from the denial of a motion to stay litigation and compel arbitration. The dispute involves three limited partnerships formed in 2004 for real estate acquisition and management. The partnership agreements contained a broad arbitration clause, but limited arbitrators to awarding "compensatory damages only." Appellees, Kotts Capital Holdings, LP and Kotts Capital Holdings, Inc., sought declaratory relief in district court after an offer to purchase the properties was rejected. Appellants, including 950 Corbindale, L.P. and others, moved to compel arbitration, arguing the dispute fell within the agreement's scope. The trial court denied the motion. On appeal, the court held the arbitration agreements were valid and the dispute, including the request for declaratory relief, was within the scope of arbitration, despite the damages limitation. The court reasoned that "compensatory damages only" modified the type of damages, not the arbitrator's authority to grant other forms of relief. Consequently, the appellate court reversed the trial court's order and remanded the case with instructions to compel arbitration.