Supply Chain Council of European Union | Scceu.org
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1st Circ. Says Air Conditioner Fight Belongs In Court

by scceu0319

By Caroline Simson (December 21, 2021, 5:03 PM EST) — A dispute over a Miami-based air conditioner wholesaler’s alleged sabotaging of its deal with a Puerto Rican distributor cannot be arbitrated under a clause the distributor signed with the wholesaler’s Japanese parent, the First Circuit ruled Monday.

The circuit court ruled that a Puerto Rican district court had been wrong to conclude that the arbitration clause in the contract between the Puerto Rican distributor, Air-Con Inc., and Daikin Industries Ltd. was enforceable with respect to the Miami-based subsidiary, Daikin Applied Latin America LLC.

The panel noted that even assuming the agreement was enforceable as to Daikin Industries — an open question since…

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