Monday, March 18, 2013

C. Itoh & Co. v. Jordan Int’l Co. case brief

C. Itoh & Co. v. Jordan Int’l Co. case brief
552 F.2d 1228
PROCEDURAL POSTURE: Appellant steel manufacturer challenged a judgment of the United States District Court for the Northern District of Illinois, Eastern Division, which found in favor of appellee steel purchaser in an action requesting a stay of the proceedings pending arbitration under the Federal Arbitration Act, 9 U.S.C.S. § 3.

-The plaintiff sent the defendant a purchase order for steel coils. 
-The defendant sent back acknowledgement form which contained additional terms and stated that seller’s acceptance is expressly conditional on buyer’s assent to the additional terms.
-One of the additional terms was an arbitration term. 
-Plaintiff never assented to these additional terms but Defendant shipped the steel and Plaintiff accepted. 
-Plaintiff sued claiming that steel was infected and was shipped late.
-Defendant moved to say the proceeding pending arbitration, but this motion denied.

-Appellee filed a complaint against appellant for non-payment.
-The district court denied appellant's request for stay of the proceeding pending arbitration under the Federal Arbitration Act (the Act), 9 U.S.C.S. § 3, because sound judicial administration required that the entire litigation be resolved in a single judicial forum.
-If appellant was otherwise entitled to a stay pending arbitration of its dispute under § 3 of the Act, it was error to deny its application on the ground that the controversy had to be resolved in the judicial, not the arbitral, forum.
-The "supplementary terms" contemplated by the Uniform Commercial Code (U.C.C.) § 2-207(3) were limited to those supplied by the standardized "gap-filler" provisions of Art. 2 of the U.C.C.
-No written arbitration provision existed in the contract created under § 2-207(3) when the parties proceeded to performance.
-The Act required that there be a written agreement to arbitrate.

OUTCOME: The judgment was affirmed.

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