United Computer Systems, Inc. v. AT & T Corp.

In 1986, United Computer Systems (UCS) signed a software licensing and development agreement with a company that later merged with its corporate parent, AT & T. This agreement contained a clause that purportedly made arbitration the exclusive means for resolving any claims or controversies between the parties arising under the agreement. The present case involves an action for arbitration by UCS *759 against AT & T that has yet to be adjudicated by an arbitration panel because counsel for UCS, 1 with a singular obstinacy demonstrated throughout this litigation, filed suit in a California state court rather than pay the filing fee demanded by the American Arbitration Association (AAA). In an effort to destroy diversity jurisdiction under 28 U.S.C. § 1332 , UCS also named Jan Stredicke, an AAA administrator, as a defendant. Nevertheless, on a theory of fraudulent joinder, AT & T successfully removed this case to federal court pursuant to 28 U.S.C. § 1441 . The district court then dismissed all claims against Stredicke and three corporate defendants, AT & T, Lucent and NCR. 2 The district court also granted the corporate defendants’ motion for sanctions against UCS. The district…