TITLE

Decisions...Developments

PUB. DATE
March 1955
SOURCE
Labor Law Journal;Mar55, Vol. 6 Issue 3, p191
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article reports on a case of first impression involving an interpretation of the United States Arbitration Act was decided January 19, 1955, by the United States Court of Appeals for the Second Circuit, Bernhardt versus Polygraphic Co. of America Inc. The dispute began when a New England employer allegedly breached its written contract of employment with a superintendent hired in 1952 for $15,000 a year. The employee sued for damages in a Vermont state court charging that he had been wrongfully discharged. Citing the contract provision and the statute, the employer asked the court for a stay of the action pending arbitration. The district judge decided that the federal statute did not apply because the case was subject to the law of Vermont. To get precedent for its decision, the Second Circuit turned to California case law, apparently because no federal court had previously decided the point. One clause in the contract clearly indicated that the parties intended New York law to be applied to settle controversies arising out of the agreement. Both the district and the circuit courts apparently ignored their wishes. The district court applied Vermont law, the circuit court halted the suit with a federal statute.
ACCESSION #
9307535

 

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