Le Vin Company v. Blue Star Wine Company

Superior Court of Pennsylvania·Decided March 23, 2018·No. 1062 EDA 2017·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

LE VIN COMPANY, LLC : IN THE SUPERIOR COURT OF : PENNSYLVANIA

:

v. :

:

:

BLUE STAR WINE COMPANY, :

ONLINEKOSHERWINE.COM, RUVANE :

RIBIAT, SHAINDY RIBIAT AND : No. 1062 EDA 2017 CHAIM TZVI ROSENBERG, :

:

Appellants :

Appeal from the Order Entered March 10, 2017 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): May Term, 2016 No. 3492

BEFORE: GANTMAN, P.J., McLAUGHLIN, J., and PLATT*, J. MEMORANDUM BY McLAUGHLIN, J.: FILED MARCH 23, 2018 Appellants Blue Star Wine Company (“Blue Star”), Onlinekosherwine.com, Ruvane Ribiat, Shaindy Ribiat, and Chaim Tzvi Rosenberg appeal from the order of the trial court overruling their Preliminary Objections to the Complaint filed by Le Vin Company, LLC (“Le Vin”) for breach of contract and related torts. Appellants sought to compel arbitration by a beth din, a “rabbinical court or arbitration forum that imposes and interprets Orthodox Jewish law.” Preliminary Objections, filed Sept. 20, 2014, at ¶ 8.1 Because Appellant’s allegations in their Preliminary Objections are insufficient

* Retired Senior Judge assigned to the Superior Court.

1See also 81 A.L.R.6th 1 (2013) (discussing applications of Jewish law in civil courts).

to make out a claim that there was an enforceable arbitration agreement, we affirm.

The underlying dispute in this case involves the sale of a kosher wine store, Rosenberg’s Judaica & Wine. On May 30, 2014, Le Vin and Blue Star entered into an asset purchase agreement transferring ownership of the business from Blue Star to Le Vin. Ruvane Ribiat was an individual party to the transaction, and also signed the agreement on behalf of Blue Star, as President. See Agreement of Sale, filed May 30, 2014, at 25.

Disputes arose following the sale, and Le Vin filed suit claiming breach of contract, fraud, violation of a restrictive covenant/non-compete-clause, and tortious interference with a contractual relationship. Le Vin listed as defendants Blue Star; Ruvane Ribiat; Shaindy Ribiat and Chaim Tzvi Rosenberg, who are allegedly shareholders and officers in Blue Star; and Onlinekosherwine.com, which is allegedly owned and operated by Rosenberg, the Ribiats, and members of their family. See Amended Complaint, filed Aug. 23, 2016, at ¶¶ 8, 12. Le Vin attached the Agreement of Sale to the Complaint, and again to an Amended Complaint. See Ex. A to Complaint, filed Jul. 29, 2016.2 The Agreement did not contain an arbitration clause or refer to a beth din.

2 Le Vin’s first Complaint named only Blue Star, Ruvane Ribiat, and Onlinekosherwine.com as defendants. Le Vin’s Amended Complaint added Shaindy Ribiat and Rosenberg.

On September 20, 2016, Appellants filed Preliminary Objections to Le Vin’s Amended Complaint. In their first Objection, Appellants asserted the existence of an agreement for arbitration and requested that the trial court compel the parties to proceed with arbitration before the Orthodox Beth Din of Philadelphia (hereinafter the “Beth Din”). Preliminary Objections, filed Sept 20, 2016, at ¶ 20 (citing Pa.R.C.P. 1028(a)(6) and 42 Pa.C.S.A. §§ 7302(a), 7304(a), (d), and 7342).3 Appellants also put forth preliminary objections on other grounds, which are not relevant to this appeal.

The factual allegations Appellants made in support of their Preliminary Objections summarized the contents of six letters, copies of which were attached as exhibits. The first letter, dated October 13, 2015, was from Rabbi Dov Brisman of the Beth Din and addressed to Jack Levin, the sole owner of Le Vin. See Agreement of Sale at 25. Rabbi Brisman stated that Ruvane Ribiat has requested that the Beth Din “summon” Levin for “clarification of sale issues.” See Exhibit 2 to Preliminary Objections.

The second letter, dated March 28, 2016, was from the attorney who

represented Le Vin regarding matters before the Beth Din, Jerome Marcus, to

3 Rule 1028(a)(6) provides for a preliminary objection on the basis of “pendency of a prior action or agreement for alternative dispute resolution.” Pa.R.C.P. 1028(a)(6). The official note to the rule states that [a]n agreement to arbitrate may be asserted by preliminary objection or by petition to compel arbitration pursuant to the Pennsylvania Uniform Arbitration Act” (“PUAA”), 42 Pa.C.S.A. § 7301-7320 (under 42 Pa.C.S.A. § 7304), or the common law (under 42 Pa.C.S.A. § 7342(a)). See id., note. As Appellants first Preliminary Objection was a request to compel arbitration, the parties refer to it at times as a Petition to Compel Arbitration.

Rabbi Brisman. Marcus stated that “efforts to settle this dispute have failed” and requested “that a date for the Din Torah be set.” See Ex. 3 to Preliminary Objections. A din torah is a “legal case under Jewish law,” held by a beth din. See Preliminary Objections at ¶ 10.

The third letter, dated August 16, 2016, was from Rabbi Brisman to the Philadelphia Court of Common Pleas, advising the court that the dispute “has been presented” to the Beth Din, which was currently trying to schedule the case. See Ex. 4 to Preliminary Objections.

The fourth letter, dated September 14, 2016, was from Marcus to Rabbi Brisman. Marcus expressed his hesitation with having the din torah on September 22, 2016, beginning at 3 p.m., given the number of witnesses and expense involved, and because Rabbi Brisman had indicated that he may decline to decide the case after hearing the expert’s testimony. Marcus stated that Le Vin intends to search for a more appropriate beth din, and would be contacting the Beth Din of America. Marcus wrote, “I do want to assure you, however, that my client has no intention of failing to appear for a din torah.” See Ex. 5 to Preliminary Objections at 1.

The fifth letter, dated September 18, 2016, was a response from Rabbi Brisman to Marcus. Rabbi Brisman stated that there “was clearly a misunderstanding” and that he and Marcus “had different impressions of what to expect.” Rabbi Brisman approved of Marcus’s plan to contact a different beth din, but advised that (pursuant to Orthodox Jewish law) Marcus should propose three options to Ruvane Ribiat, who could choose one. Rabbi Brisman

also instructed that Le Vin should not file charges with the Court of Common Pleas “except to guarantee that the statute of limitations not expire.” See Ex. 7 to Preliminary Objections.

The sixth letter, also dated September 18, 2016, was from Rabbi Brisman to the Philadelphia Court of Common Pleas, and stated that “[t]he aforementioned case[] has been presented – with agreement of both parties – to the Orthodox Beth Din of Philadelphia. We are in the process of arranging the litigation hearing schedule.” See Ex. 6 to Preliminary Objections.

In addition to summarizing these letters, Appellants’ Preliminary Objections argued that “Mr. Ribiat and the other Defendants to this action have agreed to the Din Torah proceeding demanded by Plaintiff as an alternative means of resolving this dispute, and they have cooperated with the Beth Din in moving forward with the Din Torah proceeding.” Preliminary Objections at ¶ 12. Appellants asserted in conclusion that “[b]y demanding alternative dispute resolution by means of a Din Torah before a Beth Din, and agreeing to that process, the parties have agreed to engage in an alternative dispute resolution proceeding that encompasses the entire controversy set forth in the Amended Complaint[.]” Preliminary Objections at ¶ 19. Appellants also argued that the din torah proceeding was already “underway with the participation and consent of all of the Parties hereto.” Id.

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