MailSource, LLC v. M.A. Bailey & Associates, Inc.

STILWELL, J.:

MailSouree, LLC, purchased a direct mail processing business from M.A. Bailey & Associates, Inc. Michael and Linda Bailey are the shareholders of M.A. Bailey (collectively Bailey). The asset purchase agreement contained a provision allowing either party to demand arbitration of any dispute arising out of or relating to the agreement. Bailey appeals the trial court’s denial of its motion to compel arbitration. We reverse.

FACTS

Pursuant to the agreement, MailSouree paid part of the purchase price at closing and executed a promissory note for the rest. As part of the transaction,…