Fifth Circuit Holds Issue of Arbitrability Must be Decided by an Arbitrator in Pharmacy Dispute
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The United States Court of Appeals for the Fifth Circuit has ordered that a dispute between numerous independent pharmacies and CVS Caremark Corporation and three of the company’s related business entities (“CVS”) be submitted to arbitration. In Crawford Professional Drugs, et al. v. CVS Caremark Corp., et al., No. 12-60922 (5th Cir. April 4, 2014), 23 drugstores that participated in a pharmacy benefit-management network offered by CVS claim the corporation inappropriately used patient information obtained through the program to entice pharmacy customers away from them.
Although the plaintiffs allege the agreement between the pharmacies and CVS does not require them to engage in arbitration, a Mississippi court held the arbitration clause included in the contract states otherwise. According to the district court, the agreement clearly requires that an arbitrator determine whether the parties’ dispute should be heard in a courtroom or decided through arbitration.
Read original articleTags: Arbitration, CVS Caremark Corp., Fifth Circuit, Fifth Circuit Holds Issue
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