Tenneco Resins, Inc., and Tenn-Uss Chemicals Co. v. Davy International, Ag And/or Davy McKee International, Ag

GARWOOD, Circuit Judge:

Defendant appeals the denial of its motion to stay the district court proceedings pending arbitration. We reverse.

FACTS AND PROCEEDINGS BELOW

On May 16, 1980, appellant, Davy McKee Ag (Davy), contracted with appellee, Tenneco Resins, Inc. (Tenneco), to supply catalyst on the basis of F.O.B. North German Seaport. That contract also provided that:

“If any dispute or difference shall arise, except with respect to patent law of the United States ... [it] shall be referred to arbitration under the commercial rules of the American Arbitration Association, the place of…