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- Title
Equitable Estoppel Binds Nonsignatory.
- Authors
Zuckerman, Susan C.
- Abstract
This article presents information on the legal case of International Paper Co. v. Schwabedissen Maschinen & Anlagen GmbH. The 4th Circuit held that a buyer who sought to enforce rights under a contract between a manufacturer and its distributor was equitably estopped from refusing to comply with the contract's arbitration clause. Westinghouse purchased an industrial saw manufactured by Schwabedissen Maschinen & Anlagen GmbH. The sale was made by a purchase order submitted to Wood Systems, a U.S. distributor of Schwabedissen saws. Schwabedissen confirmed the order, which included extensive specifications. The saw failed after installation. After Wood Systems declared bankruptcy, Westinghouse sued Schwabedissen. International Paper, Westinghouse's successor-in-interest under the contract, argued that the purchase order did not incorporate the General Conditions. Alternatively, it argued that it was not bound by the arbitration clause, even if part of the contract. International Paper argued that the arbitration clause was fundamentally unfair and should not be enforced because it permitted Schwabedissen to sue unless and until the dispute has been referred to arbitration by one of the parties.
- Subjects
UNITED States; ARBITRATION &; award; SCHWABEDISSEN Maschinen &; Anlagen GmbH; INTERNATIONAL Paper Co.; ACTIONS &; defenses (Law); CONTRACTS; DEFAULT (Finance); DEALERS (Retail trade)
- Publication
Dispute Resolution Journal, 2000, Vol 55, Issue 4, p93
- ISSN
1074-8105
- Publication type
Article