McDonnell Douglas Finance Corp. v. Pennsylvania Power & Light Co.

MESKILL, Circuit Judge:

In this appeal, we must construe a narrow and specific arbitration clause in a contract to determine whether the parties intended it to reach a particular dispute that has arisen out of an agreement governing the purchase of shares of preferred stock. The case is a consolidation of three separate lawsuits filed against defendant-appellant Pennsylvania Power & Light Co. (PP & L), a public utility that raises capital in part through the issuance of preferred shares. In 1986, PP & L sought to redeem, at par value, thousands of preferred shares issued in earlier years. In…