Swan Magnetics, Inc. v. Superior Court of Santa Clara County

The question presented in this proceeding is whether the superior court may hear a motion to modify or dissolve an injunction that has been issued by an arbitrator pursuant to an agreement to arbitrate. The respondent, Santa Clara County Superior Court, ordered petitioner Swan Magnetics, Inc. (Swan) to comply with a discovery request that would enable real party in interest, Antek Peripherals, Inc. (Antek) to move for modification or dissolution of a permanent injunction arising out of contractual arbitration proceedings. Swan contends that once confirmed, the injunction was a final and binding award that is not subject to modification or dissolution. We conclude that the injunction is modifiable upon the proper showing, but the superior court is not the proper forum in which to obtain such relief. Accordingly, we will grant the petition.

Background

Swan manufactures and sells test equipment used in computer disk drive products. In 1993 Swan began developing a high-speed, high-density fixed/ removable disk drive capable of conventional hard disk performance at a lower cost. For this purpose Swan wished to use a sophisticated new “air-bearing” technology developed by…