Leadertex, Inc. v. Morganton Dyeing & Finishing Corp.

CARDAMONE, Circuit Judge:

Before us is an order from the Southern District of New York (Duffy, J.) that denied a belated motion to compel arbitration. Defendant had made the motion after plaintiff brought suit against it for breach of contract, breach of warranty, negligence, conversion, replevin, and defamation. We must decide whether the party seeking to enforce arbitration has in this case waived that right.

Defendant Morganton Dyeing & Finishing Corp. (Morganton) initially sought arbitration eight months after plaintiff’s action was commenced, and seven months after successfully removing…