Novack and Macey attorneys Eric N. Macey, Donald A. Tarkington and Louis C. Szura defeated a motion to dismiss a complaint brought by their client, Mirant Americas Energy Marketing LP (“Mirant”) in the United States District Court for the Southern District of New York. The Honorable Jed S. Rakoff, in a written Memorandum Order, denied the Defendant’s motion to dismiss the action in favor of arbitration. The Court found that Mirant’s complaint for breach of a series of electric power trading contracts did not implicate an arbitration clause in a separate credit agreement between the parties. The Court noted that “under some circumstances, an arbitration clause in a contract can bind parties to arbitration even when the claim is not breach of that contract.” But after close scrutiny of Second Circuit precedent, the Court sided with Mirant and found that Mirant’s claim for breach of the electric power trading contracts did not “in any way implicate the rights and obligations” of the separate credit agreement. The Court denied Defendant’s motion to dismiss and allowed the action to go forward in the District Court.