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Dispute Resolution Keyed to Carbonneau, 8th Ed.
Bernhardt v. Polygraphic Co. of America, Inc.
Citation:
350 U.S. 198, 76 S.Ct. 273, 100 L.Ed. 199 (1956)Facts
Bernhardt entered into an employment contract with Polygraphic Company of America, a New York corporation. The contract was made in New York when Bernhardt was a New York resident, but he later moved to Vermont where he was to perform his duties under the contract. The contract contained an arbitration clause providing that any disputes would be submitted to arbitration under New York law by the American Arbitration Association, whose determination would be “final and absolute.” After Bernhardt was discharged, he brought suit for damages in Vermont state court. Polygraphic removed the case to federal court based on diversity jurisdiction and moved for a stay of proceedings so that the dispute could be arbitrated in New York as specified in the contract. The enforceability of the arbitration provision became the central issue, with Vermont law making such agreements revocable while New York law would enforce them.
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