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Raytheon Co. v. Automated Business Systems, Inc.

United States Court of Appeals for the First Circuit
882 F.2d 6 (1989)

Written by Rich Walter, JD

Facts

Automated Business Systems (Automated) (defendant) contracted with Raytheon Company (Raytheon) (plaintiff) to distribute Raytheon equipment. Eventually the parties fell out. Automated charged Raytheon with fraud and deceit and invoked the contract’s open-ended arbitration clause. The arbitration panel sided with Automated and ordered Raytheon to pay both compensatory and punitive damages. Raytheon appealed the punitive-damages award to a federal district court, which affirmed the arbiter’s judgment. Raytheon then appealed to the First Circuit.

Rule of Law

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Issue

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Holding and Reasoning (Reinhardt, J.)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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