‘Undue Delay’ in Pursuing Arbitration Constitutes Waiver of Arbitral Right, 1st Cir. Rules

BOSTON — A party waived its right to arbitrate a contract dispute by engaging in “extensive litigation activities” for more than eight months before pursuing arbitration, which prejudiced the defendant, the 1st Circuit U.S. Court of Appeals has ruled.

In a Dec. 1 opinion, the appellate court found the party’s undue delay in asserting its arbitral rights constituted a conduct-based waiver.

In 2005, Joca-Roca Real Estate LLC and Robert T. Brennan Jr. entered into an asset purchase agreement that called for the transfer of title to real property that was the site of a vehicle dealership in Maine. The …