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ARTICLE · 30 MARCH 2020

Dilatory And Indecisive Litigant Loses Chance At Arbitration

Masuda, Funai, Eifert & Mitchell, Ltd.
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When a party is in litigation, but feels it has a right to arbitrate, it can be a difficult decision whether to allow the litigation to continue or to force arbitration.

United StatesLitigation, Mediation & Arbitration

Executive Summary

When a party is in litigation, but feels it has a right to arbitrate, it can be a difficult decision whether to allow the litigation to continue or to force arbitration. But, as illustrated in a recent 7th Circuit case, the party should make the decision at an early stage and not waver. (Brickstructures, Inc. v. Coaster Dynamix, Inc., 7th Circuit Court of Appeals, No. 19-2187, March 11, 2020)

Brickstructures is a product design firm that creates LEGO sets. Coaster Dynamix creates and sells model roller coasters. The two companies agreed to work together to design a roller coaster kit that would be compatible with LEGOs or other plastic bricks. For this purpose, they entered into a joint venture agreement which Judge Scudder, the author of the 7th Circuit opinion, characterized as "no master class in contract drafting - it was a stock, fill-in-the-blank agreement with spaces for the terms and details to be inserted. Many of those

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