Avenatti goes onto argue that Cohen’s motion to compel arbitration per the terms of the contract is moot until this fundamental question of Trump’s knowledge of the agreement can be sorted out via limited discovery, including depositions of the president and Cohen. He also cites previous cases where arbitration agreements have been nullified because courts have determined that a contract was never formed.
Again, this argument is incredibly solid. As Loyola Law School professor and arbitration expert Adam Zimmerman told me over email:
Avenatti’s argument that the Court set aside the arbitration agreement is well-grounded in federal arbitration law. … [C]ourts generally determine questions about whether an arbitration agreement was initially formed at all. That should make sense, as a general principle, too. If someone never even signed an agreement to arbitrate, for example, what business does some random person have deciding rights between total strangers. That’s what Avenatti argues here: that there’s a genuine factual dispute over whether one of the critical parties to this agreement–in this case, President Trump–ever agreed to be bound by arbitration. In such cases, the Federal Arbitration Act provides for a summary jury proceeding to decide whether a contract exists. And accordingly, Avenatti is pursuing limited factual discovery to that end.
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