The defendants brought a motion to dismiss the plaintiff's action, arguing that a Founders' Restricted Rights Agreement explicitly mandated arbitration for all disputes.
Despite the plaintiff initially commencing an action to gain discovery advantages, both parties ultimately agreed on the validity and enforceability of the arbitration clause.
The court dismissed the action, finding the plaintiff had no right to litigate the dispute in court and should have pursued arbitration or discontinued the action earlier.
Costs were awarded to the defendants due to the plaintiff's unnecessary litigation and refusal to withdraw the action.
