737 F.3d 492
8th Cir.2013Background
- Tromley Industrial Holdings, Inc. (Tromley) appeals a district court denial of its motion to compel arbitration.
- Dakota Foundry, Inc. purchased iron foundry equipment from Tromley’s Kloster division; Tromley is an Oregon company and Dakota is in South Dakota.
- Kloster quotes in December 2009 and an April 2010 revised quote referred to the Standard Terms and Conditions of Sale but did not attach them.
- Dakota received quotes without the Standard Terms and Conditions, and Dakota did not discuss arbitration.
- June–July 2010 emails attached different Standard Terms and Conditions from other Tromley divisions; Dakota dealt only with Kloster and had no notice those attachments applied.
- Dakota sued, and Tromley sought arbitration; the district court found no arbitration clause consent and denied arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Standard Terms and Conditions were incorporated by reference | Tromley contends terms were incorporated. | Dakota contends terms not clearly incorporated; not readily available. | No arbitration clause formed; no meeting of minds. |
| Whether June/July 2010 emails properly amended the agreement to include arbitration | Emails created an addendum incorporating arbitration. | Attachments not tied to Kloster; no mutual assent. | No modification; no mutual assent to arbitration. |
Key Cases Cited
- Mitsubishi Motors Corp. v. Soler Chrysler–Plymouth, Inc., 473 U.S. 614 (Supreme Court 1985) (arbitration question arises from contract terms)
- James River Equip. Co. v. Beadle Cnty. Equip., Inc., 646 N.W.2d 265 (S.D. 2002) (incorporation by reference requires knowledge or easy availability)
- Halbach v. Great-West Life & Annuity Ins. Co., 645 F.3d 872 (8th Cir. 2009) (terms incorporated only if known or easily available)
- S. Nat'l Bank of Houston v. Crateo, Inc., 458 F.2d 688 (5th Cir. 1972) (ignorance of contract terms may be insufficient excuse)
