Cunico Corp. v. Custom Alloy Corp.

MEMORANDUM

Cunico Corporation appeals the district court’s order granting Custom Alloy Corporation’s motion to compel arbitration and dismissing Cunico’s action. We have jurisdiction over the appeal under 9 U.S.C. § 16 (a)(3). We review de novo the district court’s decision and its legal conclusions regarding the existence of a contract, and for clear error its factual findings. Casa del Caffe Vergnano S.P.A. v. ItalFlavors, LLC, 816 F.3d 1208, 1211 (9th Cir. 2016). We reverse and remand.

The district court erred in compelling arbitration. Under the Federal Arbitration Act, a district court’s role is “limited to determining (1) whether a valid agreement to arbitrate exists and, if it does, (2) whether the agreement encompasses the dispute at issue.” Chiron Corp. v. Ortho Diagnostic Sys., Inc., 207 F.3d 1126, 1130 (9th Cir. 2000). A court may “decide as a matter of law that the parties did or did not enter into” an arbitration agreement “[o]nly when there is no genuine issue of fact concerning the formation of the agreement.” Three Valleys Mun. Water Dist. v. E.F. Hutton & Co., 925 F.2d 1136, 1141 (9th Cir. 1991) (citation omitted). The district court’s order did not make the…