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Dispute Resolution Keyed to Carbonneau, 8th Ed.
Photopaint Technologies v. Smartlens Corp.
Citation:
335 F.3d 152 (2003)Facts
In December 1997, Photopaint and Smartlens entered into a license agreement containing an arbitration clause. When a dispute arose in October 1999, they submitted it to arbitration. On May 26, 2000, the arbitrator signed a “Final Award” providing that either party could elect to rescind the license agreement within thirty days of receiving the award, with different payment amounts depending on which party rescinded first. Due to an unexplained delay by the American Arbitration Association, the parties did not receive the award until October 3, 2000. As the rescission deadline approached, the parties entered into a series of letter agreements extending the time for rescission and other actions to facilitate settlement discussions. These extensions continued beyond May 26, 2001, which marked one year from when the award was made. After negotiations broke down in July 2021, Photopaint rescinded the agreement and filed a petition to confirm the award. Smartlens opposed confirmation, arguing the petition was time-barred under Section 9 of the FAA.
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