Kawasaki Heavy Industries, Ltd. v. Bombardier Recreational Products, Inc.

In action seeking specific performance of terms of parties’ settlement agreement or alternatively alleging breach of contract and fraud, Dist. Ct. erred in denying defendant’s motion to stay instant action based on arbitration clause contained in settlement agreement. While Dist. Ct. had found that defendant had waived its right to arbitrate instant dispute based on defendant’s participation in plaintiff's prior litigation seeking to reopen lawsuit that generated instant settlement agreement, record demonstrated no waiver where defendant's prior participation in lawsuit consisted of filing pleading that challenged court’s jurisdiction to hear plaintiff’s lawsuit based upon existence of arbitration agreement. Fact that defendant had prevailed in prior lawsuit and participated in plaintiff’s appeal of lawsuit’s dismissal did not require different result. Moreover, while Dist. Ct. rejected defendant’s request to stay portion of plaintiff’s action against non-signatories to settlement agreement based upon said arbitration clause, Dist. Ct. could not act on defendant’s request since defendant lacked standing to assert rights of non-signatory co-defendants.