Lounge-A-Round

Lounge-A-Round v. GCM Mills, Inc.

Caution
109 Cal. App. 3d 190·166 Cal. Rptr. 920·1980 Cal. App. LEXIS 2403·29 U.C.C. Rep. Serv. (West) 778
Court of Appeal of CaliforniaAugust 13, 1980Civ. 57268California3,970 words

Opinion

Opinion

Klein, J.

Statement of the Case

Appellant GCM Mills, Inc. (GCM) appeals from the denial of its motion to compel arbitration directed against respondent Lounge-ARound (LAR).

Statement of Facts

During the period of time from May to August 1977, LAR, a California corporation, entered into three contracts with GCM, a corporation with its principal place of business in New York, for the purchase of a particular fabric. Shortly thereafter, in the fall of 1977, a dispute arose as to the quality of the material delivered to LAR. On November 8, 1977, LAR filed a complaint against GCM in the Superior Court of Los Angeles County, alleging breach of contract and breach of warranty. GCM then filed a petition in the United States District Court for the Southern District of New York seeking to compel arbitration in New York. The district court dismissed this petition with prejudice pursuant to a stipulation of the parties and its own deliberations on March 3, 1978.

On March 13, 1978, GCM answered LAR’s superior court complaint and filed a cross-complaint which alleged breach of contract and included a claim arising out of a fourth contract with LAR, unrelated to the previous three. In the…

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