Recognition Equipment v. NCR Corp.
United States District Court for the Northern District of Texas
532 F. Supp. 271 (1981)
- Written by Alexander Hager-DeMyer, JD
Facts
Recognition Equipment, Inc. (Recognition) (plaintiff) contracted to sell mechanical goods and parts to NCR Corporation (defendant). The contract contained an arbitration provision stating that the parties agreed to arbitrate any disputes arising under the contract. Recognition claimed that it sent the requested goods to NCR but received insufficient payment based on an outdated pricing list. Recognition filed suit in Texas state court, and NCR removed the case to federal court. NCR filed a motion to stay proceedings pending arbitration under the Federal Arbitration Act (FAA), citing the arbitration provision of the sales contract. Recognition claimed that it did not agree to arbitration of the dispute. Recognition further argued that even if it were bound to arbitration, the parties were entitled to continue discovery pending arbitration under the Federal Rules of Civil Procedure. The district court found that Recognition did agree to arbitrate the dispute and then addressed Recognition’s discovery claim.
Rule of Law
Issue
Holding and Reasoning (Porter, J.)
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