Design Consultant Agreement Arbitration Clause.

Byline: Derek Hawkins

WI Court of Appeals District IV

Case Name: Thomas Zimmer Builders, LLC v. Kurt E. Roots, et al.

Case No.: 2017AP2037

Officials: Lundsten, P.J., Kloppenburg and Fitzpatrick, JJ.

Focus: Design Consultant Agreement Arbitration Clause

Kurt and Monika Roots filed a third-party complaint against Mark Udvari-Solner seeking relief based on intentional misrepresentation, violation of WIS. STAT. 100.18 (2015-16), and equitable contribution or indemnification. In support of their claims, the Rootses alleged that Udvari-Solner falsely represented himself to be an architect to induce the Rootses to enter into a Design Consultant Agreement with Udvari-Solner Design Co. for the design of the Rootses' new house. Udvari-Solner moved to compel arbitration pursuant to the arbitration clause in the Agreement. The circuit court denied the motion. This court granted Udvari-Solner's petition for leave to appeal the court's non-final order.

First, we take as admitted Udvari-Solner's argument, supported by legal authorities, that the Rootses' claims alleging fraud in the inducement of the Agreement challenge the validity of the entire Agreement and are therefore subject to the arbitration clause in the Agreement. We deem this argument admitted because the Rootses fail to...