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Shannon v. McKay arbitration case study

Case background: Partnership dispute involving the purchase price for a 10% partnership interest to a general partner (McKay) who had been removed from the management of an apartment complex near Sacramento, CA., financed with California Rural Development funds.

The dispute began in 2004 and was resolved by AAA panel in May 2009.

P. B. DeLacy was selected by Shannon, the party seeking to acquire the interest, as their representative on a three-person arbitration panel. The proceeding represented Shannon’s third formal attempt to initiate the arbitration to value the Mackay’s interests provided for in the Partnership Agreement. This followed several informal attempts to agree upon value.

The parties selected the AAA rules because AAA arbitration because they found that AAA had proven to be an effective way to resolve such disputes privately, promptly, and economically. The week-long arbitration dealt with complex issues of contract law, valuation and the facts of the case.