NAVCOM DEFENSE ELECTRONICS, INC., Plaintiff-Appellee, v. BALL CORPORATION, Defendant-Appellant

This is an appeal from the district court’s order granting summary judgment for Nav-Com and enjoining Ball from submitting its contract dispute with NavCom to arbitration. For the reasons set out below, we affirm the district court’s denial of Ball’s motion to dismiss, reverse the court’s grant of summary judgment, vacate the order prohibiting arbitration, and remand for entry of an order consistent with this opinion.

I.

The Air Force awarded NavCom a contract to produce a radar altimeter system. NavCom subcontracted with Ball to design and manufacture antennas to be used as part of the system. The Air Force required that the antennas meet certain pass/fail criteria, including the “MIL-STD-810” salt fog test. NavCom developed the NavCom Salt Fog Test Procedure to ensure that its antennas met Air Force specifications, and the Air Force approved the test. The subcontract required Ball’s antennas to pass the NavCom Salt Fog Test.

Ball asserted that NavCom’s test procedures were more rigorous than those required by the Air Force, but eventually performed the test according to NavCom’s procedure. NavCom claimed that the antennas failed, while Ball insisted that the antennas passed…