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SUBURBAN LEISURE CENTER v. AMF BOWLING PRODUCTS

United States Court of Appeals, Eighth Circuit (2006) | 468 F.3d 523

3 min read

TL;DR: A company tried to force arbitration for a dispute over an oral agreement by citing a merger clause in a later, separate written contract. The court refused, finding the oral agreement was a distinct "collateral contract" not covered by the written agreement's arbitration clause.

Legal Significance: A merger clause in a written agreement does not automatically extinguish a prior oral agreement if the oral agreement is a distinct, collateral contract covering a different subject matter, thereby limiting the scope of the written agreement's arbitration clause.

A 'reasonable person' is a legal fiction I'm pretty sure I've never met.

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