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MJR International, Inc. v. American Arbitration Association, Inc.

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Before: BOGGS and CLAY, Circuit Judges, and WISEMAN, District Judge.*fn1

This appeal arises from a dispute regarding the binding effect and scope of an arbitration clause in a commercial agreement. Appellee Victoria’s Collection entered into a written agreement (the Agreement) with Oxford Investment Group (Oxford) to purchase certain goods. The Agreement included an arbitration clause that required the parties to arbitrate any controversies related to the Agreement. Later, Oxford allegedly breached the Agreement, leading Victoria’s Collection to initiate arbitration proceedings. Victoria’s Collection sought to join appellant MJR International, Inc. (MJR) to the arbitration proceedings on the theory that MJR was Oxford’s principal and that Oxford had signed the Agreement on MJR’s behalf. The arbitrator granted Victoria’s Collection’s request. When MJR received notice that the arbitrator had made MJR a party to the arbitration proceedings, it filed the present action in Ohio state court seeking declaratory and injunctive relief. Invoking diversity jurisdiction, Victoria’s Collection removed the case to the United States District Court for the Southern District of Ohio.

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