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Robert Lawrence Co. v. Devonshire Fabrics
United States Court of Appeals for the Second Circuit
271 F.2d 402 (1959)
Robert Lawrence Company (Lawrence) (plaintiff), a Massachusetts corporation, ordered wool from Devonshire Fabrics, Inc. (Devonshire) (defendant). Devonshire sent a confirmation for the sale, but the terms differed from the initial order. Both documents included an arbitration provision covering any disputes related to the contract. Lawrence claimed that the wool products were defective and filed suit against Devonshire in federal district court, arguing that Devonshire fraudulently induced purchase of the goods. Devonshire moved for a stay of proceedings pending arbitration under the United States Arbitration Act, also known as the Federal Arbitration Act (FAA). The district court denied the motion, finding that a stay required a valid arbitration agreement, and the court had not yet determined whether the agreement with Lawrence was fraudulent or valid. Devonshire appealed to the Second Circuit.
Rule of Law
Holding and Reasoning (Medina, J.)
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