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Dispute Resolution Keyed to Carbonneau, 8th Ed.
Robert Lawrence Co. v. Devonshire Fabrics
Citation:
271 F.2d 402 (1959)Facts
On August 4, 1955, Robert Lawrence Company ordered 36 pieces of woolen fabric through its New York office from Devonshire Fabrics. Both Lawrence’s order and Devonshire’s confirmation contained an identical arbitration clause stating that any controversy arising from the contract would be referred to arbitration. Delivery was postponed at Lawrence’s request until June 1956, and Lawrence paid the purchase price of $9,062.43 in July 1956. Lawrence later claimed to have discovered latent defects in the fabric, alleging it was not “first quality” as specified in the agreement. Lawrence filed suit claiming fraudulent misrepresentation by Devonshire in inducing the purchase. Devonshire moved for a stay of proceedings pending arbitration under the Federal Arbitration Act, but the district court denied the motion, holding that the question of fraud in the inducement of the contract had to be judicially determined before arbitration could proceed.
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