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Dealer Computer Services Inc. v. Old Colony Motors Inc.

In determining whether a dispute falls within the agreement to arbitrate, the Supreme Court has decided that, absent an agreement to the contrary, the parties intend that the arbitrator, not the courts, should decide certain procedural questions that grow out of the dispute and bear on its final disposition. 5th U.S. Circuit Court of Appeals, No. 09-20049, 11-19-2009

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Published opinion

Before GARWOOD, OWEN, and SOUTHWICK, Circuit Judges.

Dealer Computer Services, Inc., (Dealer Services) sued under 9 U.S.C. § 4 to compel Old Colony Motors, Inc., to pay a deposit in the underlying arbitration. In that arbitration, Old Colony informed the arbitrators that it could not afford to pay its share of the required deposit before the final arbitration. The arbitrators asked Dealer Services to pay the full deposit. Dealer Services refused and brought this suit to compel the arbitration. The trial court ordered Old Colony to pay its share of the deposit. Old Colony now appeals on four separate grounds. Because we reverse the trial court on Old Colony’s second ground for appeal, we need not address the other grounds Old Colony raises.

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