BALTIMORE-A Maryland Circuit Court judge has ordered anarbitration panel to hear the claims brought by RelatedFund Management and Corvex Management LPagainst CommonWealth REIT. Related and Corvex,whose $2.9-billion offer to buy all outstanding shares of CWHcommon stock was turned down earlier this spring, had sought aconsent solicitation for a vote to remove the Newton, MA-basedREIT's board.

Circuit Court Judge Audrey J.S. Carrion on Wednesday deniedRelated and Corvex's motion to stay an arbitration hearing,according to court documents, which also required the twoplaintiffs to pay court costs. “The plain fact is thatPlaintiffs—two very sophisticated parties, both of which apparentlyinvestigated and analyzed CWH's bylaws prior to purchasing stock inCWH—had actual knowledge of the arbitration bylaws” and thereforeassented to them through buying the stock, Carrion wrote. Relatedand Corvex, both based in New York City, own a total of 9.2% ofCWH's common stock.

In a joint statement, Related and Corvex on Thursday expresseddisappointment with the court's decision. However, according to thestatement, “we are pleased that a sophisticated arbitration panelhas already been formed to address our claims."