TEXTILE UNLIMITED, INC. V. A. BMH AND COMPANY, INC.
240 F.3d 781 (9th Cir. 2001)
NATURE OF THE CASE: This was a dispute over the venue to enjoin arbitration. BMH (D) appealed a preliminary injunction against an arbitration proceeding.
FACTS: Textile (P) and BMH (D) did business on 38 separate transactions. Each transaction contained an order acknowledgment and invoice from D that contained a mandatory arbitration clause with venue to be in Georgia. The clauses required P to respond in 24 hours if it did not agree. P never responded and eventually it got a shipment that it refused to pay for alleging that the yarn was defective. D submitted the matter to arbitration. P did not object at first but then protested, contending that the arbitration clause had not been part of their contract. P then filed an action in District Court in California. P then moved for a stay of arbitration and the court enjoined both the pending arbitration and any further action regarding arbitration for the dispute. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND
DECISION:
LEGAL ANALYSIS:
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