Apollo Computer, Inc. v. Berg

886 F.2d 469 (1989)

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Apollo Computer, Inc. v. Berg

United States Court of Appeals for the First Circuit
886 F.2d 469 (1989)

Facts

Apollo Computer, Inc. (Apollo) (plaintiff) entered an agreement with Dico, a Swedish company represented by Helge Berg (defendant). The agreement contained an arbitration clause providing that the parties would settle all disputes arising out of the agreement in accordance with the International Chamber of Commerce (ICC) Rules. The agreement also contained clauses providing that Massachusetts law would govern the contract and that the contract could not be assigned without the written consent of Apollo. In September 1984, Apollo notified Dico that it intended to terminate the agreement. Dico filed for protection from its creditors under Swedish bankruptcy law before entering into liquidation. The bankruptcy trustee assigned the contract between Apollo and Dico to another set of defendants. These defendants assigned the contract filed for arbitration under the ICC. Apollo challenged the arbitration, claiming its agreement to arbitrate was only between Dico and Apollo. The ICC required the parties to submit briefs and then decided that the arbitrator should decide the issue of arbitrability. When the ICC ordered the parties to begin arbitration, Apollo filed for a permanent stay of arbitration before the district court. The district court denied the stay of arbitration, finding that the parties explicitly agreed to have the arbitrators decide the issue of arbitrability. The district court rendered a decision about the arbitrability, finding that Dico would have had the right to pursue arbitration and that the defendants assigned the contract had the right to arbitrate under Massachusetts law. Apollo appealed to the First Circuit, arguing that the defendants assigned the contract did not have the right to arbitrate under the contract.

Rule of Law

Issue

Holding and Reasoning (Torruella, J.)

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