Lea Tai Textile Co. v. Manning Fabrics, Inc.

411 F. Supp. 1404 (1975)

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Lea Tai Textile Co. v. Manning Fabrics, Inc.

United States District Court for the Southern District of New York
411 F. Supp. 1404 (1975)

Facts

Between November 1973 and April 1974, Lea Tai Textile Co. (Lea Tai) (plaintiff) entered a series of agreements to sell cotton cloth to an American company, Manning Fabrics, Inc. (Manning) (defendant). In September 1974, Manning sent an order form to Lea Tai with an arbitration clause requiring all disputes to be settled by arbitration in New York. Lea Tai sent a confirmation code agreeing to arbitration in Hong Kong. Lea Tai sent a shipment of cotton to New York from its operation in Hong Kong. Lea Tai alleged Manning wrongfully refused to accept the goods. Manning countered that Lea Tai sent defective goods as part of a prior shipment in August 1974 and that it told Lea Tai to cease any future shipments. Manning filed suit in the Court of Common Pleas in South Carolina. Lea Tai then filed suit in the district court to stay the proceeding in South Carolina and to compel arbitration in New York. Manning argued that the parties never reached an agreement on an arbitration agreement and that the court could not compel arbitration under the clauses cited by Lea Tai.

Rule of Law

Issue

Holding and Reasoning (Duffy, J.)

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