American Italian Pasta Co. v. Austin Co.
United States Court of Appeals for the Eighth Circuit
914 F.2d 1103 (1990)

- Written by Melissa Hammond, JD
Facts
American Italian Pasta Co. (American Pasta) (plaintiff) and Austin Co. (defendant) contracted for Austin to design and build a pasta factory. The contract provided that, in the event of a dispute between the parties, upon written notice of one party to the other, both parties would use their best efforts to settle the dispute before either would institute legal action. If the dispute could not be settled, then it could be submitted to arbitration, and that decision would be binding. A dispute arose between American Pasta and Austin, and they could not settle it. Austin began arbitration proceedings. American Pasta sought a stay of arbitration in state court, but Austin removed the action to federal court. The federal district court held that the parties’ contract merely allowed, but did not compel, arbitration, and it denied Austin’s motion to compel arbitration. Austin appealed.
Rule of Law
Issue
Holding and Reasoning (Wollman, J.)
Dissent (Gibson, J.)
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