Motion to Stay Pending Arbitration or, in the Alternative, to Transfer, Denied Without Prejudice

American Panel Corp. v. Huh et al., 1:08-cv-01241 (N.D. Ga. March 5, 2009) (Carnes, J.)

This case involves claims by Plaintiff American Panel Corporation, a Georgia corporation, that Defendant Vertex LCD, Inc., a California corporation, breached a contractual obligation to Plaintiff, infringed Plaintiff’s patent, and tortiously interfered with Plaintiff’s business relationships. Plaintiff’s breach of contract claims relate to a Supply Agreement and three Purchase Orders entered into between the parties. The Supply Agreement included an arbitration clause, providing that any dispute or claim arising out of or in connection with the agreement shall be arbitrated in Los Angeles, California.

Before the Court was Defendant’s motion to stay the litigation so that the parties may proceed to arbitrate portions of the dispute in California, or, in the alternative, to transfer the case to the Central District of California.

After reviewing the parties’ briefing, the Court remained uncertain whether the case should be sent to arbitration. Judge Carnes felt that several questions had not been answered, such as what effect, if any, an alleged termination of the Supply Agreement had on the arbitration issue and whether the arbitration clause covers a claim of patent infringement. The Court therefore denied the motion without prejudice and directed the parties to address several specific issues in any subsequent briefing should the Defendant wish to refile its motion.