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Case of the Day: Katz, Nannis & Solomon v. Levine

The case of the day is Katz, Nannis & Solomon, P.C. v. Levine (Mass. 2016). The case involved a dispute among the shareholders of a small accounting firm formerly known as Levine, Katz, Nannis & Solomon, P.C. Katz, Nannis, and Solomon voted to require Levine to withdraw as a director and stockholder. Levine disputed their action, and the parties arbitrated the matter. Their agreement provided that it was “subject to and governed by the laws of the Commonwealth of Massachusetts pertaining to agreements executed in and to be performed in the Commonwealth of Massachusetts.” It also contained an agreement to arbitrate that read as follows:

In the event of any dispute concerning any aspect of this Agreement, the parties agree to submit the matter to binding arbitration before a single arbitrator appointed by the American Arbitration Association.…The decision of the arbitrator shall be final; provided, however, solely in the event of a material, gross and flagrant error by the arbitrator, such decision shall be subject to review in court.… [T]he party against which final, adverse judgment is entered [shall be] responsible for (in addition to its own) the other party’s(ies’) costs and expenses, including reasonable attorneys’ fees.

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