Power Replacements, Inc., and Max Wheeler v. Air Preheater Co., Inc. And Combustion Engineering, Inc.

This is an appeal from an order denying motions of plaintiffs-appellants for a preliminary injunction and abatement of arbitration proceedings and granting a motion of defendants-appellees for a stay pending completion of the arbitration proceedings. Two questions are presented: (1) whether the order is appealable under 28 U.S.C. § 1292 (a) (1); and (2) whether an agreement to arbitrate claims arising out of violations of the antitrust laws of the United States may be enforced.

Prior to 1962 appellee Air Preheater Co., Inc., was the sole manufacturer of an air preheater replacement element used by private industry and private and public utility companies. In 1962 appellant Power Replacements, Inc., was organized in California and began manufacturing and selling the element in competition with Air Preheater.

In April, 1965, Power Replacements filed a private antitrust action against Air Preheater and its parent company, Combustion Engineering, Inc., in the United States District Court for the Southern District of California.. The complaint alleged that defendants had violated the federal antitrust laws and engaged in unfair competition through discriminatory predatory pricing…