T hi s di s pos i t i on i s notappr opr i a t e f orpubl i c a t i on a nd i s notpr e c e de nt * e xc e pta s pr ovi de d by 9th C i r . R . 36- 3.

T he pa ne l una ni m ous l y c onc l ude s thi s c a s e i s s ui t abl e f orde c i s i on ** w ith o u t o r a l a r g u m e n t. See F ed. R . A pp . P . 34 (a )( 2).

T he H onor abl e S uz a nne B . C onl on, U ni t e d S t a t e s D i s tr i c tJ udge f or *** the N or the rn D i s tr i c tof I l l i noi s , s i tt i ng by de s i gna t i on. NOT F OR P UB L I CAT I ON UN I TE D STATE S C OU RT OF APPE ALS FOR T HE NI NTH CI RC UI T FA D A L M A CH I N I N G CEN TERS, LLC, P la in tif

f - A p p e lla n t, v. C O M P U M A C H I N E , I N C ., D ef

endant -A pp el l ee . N o. 10- 55719 D . C. N o . 2 : 0 9 - c v - 0 6 4 7 8 - PA - FFM ME MOR AN DU M *

A pp ea l fr om the U ni t ed S t at es D i stri ctC ou rt f o rth e C e n tr a l D is tr ic t o f C a lif o rn ia P e r c y A nde r s on, D i s tr i c tJ udge , P r e s i di ng S ubm i tt e d D e c e m be r7, 2011 ** P a s a d e n a , C a lif

o rn ia B ef ore: P R E G E R S O N and P A E Z , C i rc ui tJudg es , and C O N L O N , D i stri ctJudg e. *** F a da l M a c hi ni ng C e nt e r s , L L C ( “ F a da l ” ) , am a nuf a c tur e rof

m a c hi ne s a nd m a c hi ne - r e l a t e d pa r t s , s ue d C om pum a c hi ne , one of i t s e xc l us i ve di s tr i but or s , f or 

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y th e c itiz e n s h ip o f

a ll its m e m b e r s o ro w n e r s . J ohns on v . Co lu m b i a Pr o

p e r t i e s An c h o r a g e LP , 43 7 F . 3d 89 4, 89 9 (9th C i r. 20 06 ). 10- 55719 2 brea ch of contra ctand the du ty of goo d fai th. T he ca se w as fi l ed i n the U ni t ed S t a t e s D i s tr i c tC our tf

orthe C e ntr a l D i s tr i c tof C a l i f orni apur s ua ntt o af

orum se l ec t i on prov i si on i n the part i es ’ di stri bu t orshi p agreement. F adal ’ s a m ended c o m p la in t e s tab lis h e d d iv e r s ity ju r is d ic tio n u n d e r2 8 U .S .C . § 1 3 3 2 . A tta c h e d to 1 th e c o m p la in t w e r e ac o p y o f th e d is tr ib u to r s h ip a g r e e m e n t a n d f if te e n a lle g e d ly unpa i d i nvoi c e s tha te a c h r e f e rr e d t o F a da l ’ s w e bs i t e f orthe t e rm s a nd c ondi t i ons of s a l e . T he t e rm s a nd c ondi t i ons pos t e d on F a da l ’ s w e bs i t e w e r e r e f e r e nc e d i n the c o m p la in t. T h e w e b s ite ’s au th e n tic ity w a s u n d is p u te d . F a da l dr a f

t e d the di s tr i but or s hi p a gr e e m e nta nd a l l r e l a t e d doc um e nt s . T he a g r e e m e n t p r o v id e d th a t F a d a l w o u ld u n ila te r a lly e s tab lis h “th e te rm s o f s a le . . . fr om t i m e t o t i m e. ” T he t erm s and cond i t i on s on F adal ’ s w ebsi t e provi ded that w i thi n si x m on ths af

t erany a ctor om i ss i on i n con trovers y, cl ai m s or di sput es “a r is in g o u t o f

o rr e la te d to th is a g r e e m e n t, o rth e b r e a c h th e r e o f ” s h a ll e x c lu s iv e ly be subm i tt ed t o arbi tra t i on i n L os A ng el es , C al i forni a und erthe C om m er ci al A rbi trat i on R ul es of the A m er i ca n A rbi tra t i on A ss oci at i on (“ A A A ”) . T he di stri ct co u rtd i sm i ssed th i s case w i th o u tp rej u d i ce u n d er F ed . R . C i v . P . 1 2 (b )(6 ) b ecau se F a da l ’ s ow n t e rm s a nd c ondi t i ons of s a l e f ore a c h i nvoi c e r e qui r e d s ubm i s s i on of10- 55719 3 non- pa y m e ntc l a i m s t o a rbi tr a t i on. T he c our tr e l i e d on the br oa d l a ngua ge of the arb i trat i o n cl au se as cl earl y est ab l i sh i n g an ag reem en tt o su b m i tal l d i sp u t es, i ncl ud i ng the qu es t i on of arbi trabi l i ty, t o an arbi trat or. F a d a l tim e lyap p e a le d . W e h a v e ju r is d ic tio n u n d e r2 8 U .S .C . § 1 2 9 1 . W e r e vi e w the di s tr i c tc our t ’ s de t e rm i na t i on of the va l i di ty a nd s c ope of a n a rbi tr a t i on c lau s e d e n o v o . Cha lk v . T -M ob i le U SA , Inc. , 5 6 0 F .3 d 1 0 8 7 , 1 0 9 2 ( 9 th C ir . 2 0 0 9 ) . C a lif o rn iala w p r o v id e s th e s u b s ta n tiv e c o n tr a c t la w o f d e c is io n . Se e Fi rs t

O pt i ons of Chi . , I nc . v . Kaplan , 5 1 4 U . S. 9 3 8 , 9 4 4 ( 1 9 9 5 ) . A n y a mb i g u i ty i n c o n tr a c tt e rms is c o n s tru e d a g a in s t th e p a r ty th a t d r a f te d th e a g r e e m e n t. C a l. C iv . C o d e § 1 6 5 4 . T he l a ngua ge of

a n a rbi tr a t i on a gr e e m e nte s t abl i s he s w he the rthe de t e rm i na t i on of a rb itr ab ility is f

o rth e c o u r t o rd e le g a te d to a n a rb itr a to r . Fi rs t O pt i ons , 51 4 U . S . at 9 4 3 . T he di stri ctcourtdi d n oterr i n con cl ud i ng an arbi tra t i on agre em entexi st ed b e tw e e n th e p a r tie s . Se e R e nt-A - C e nte r, W e s t , I nc . v . J ac k s on , 130 S . C t . 2772, 27 78 n. 2 (20 10 ) ( l i m i t i ng the i ni t i al qu es t i on t o “ w hether a ny agre em entbetw ee n the part i es ‘ w as everconcl ud ed’ ”) . E ac h i nv oi ce att ac hed t o the com pl ai ntre fe rr ed t o the t e rm s a nd c ondi t i ons of s a l e on F a da l ’ s w e bs i t e . F a da l ’ s ow n t e rm s a nd c ondi t i ons i nc l ude d ac l e a ra nd c om pr e he ns i ve m a nda t ory a rbi tr a t i on c l aus e . T he t erm s and cond i t i on s w er e e nt i t l ed “ C O N T R A C T ” i n l ar ge bo l d type, and st at ed10- 55719 4 tha ti t s t e rm s pr e va i l e d ove ra ny othe ra gr e e m e nt . T he di s tr i but or s hi p a gr e e m e nt a tt a c he d t o the c om pl a i ntc l e a r l y e xpr e s s e d the pa r t i e s ’ i nt e nttha tC om pum a c hi ne w ou l d b e bou nd by the t erm s and cond i t i on s F adal se tfor e ac h sal e of m ac hi nery a n d p a r ts . See D V

D C op y C on trol

A ss ’n v. Kal ei desc ap e, Inc. , 97 C a l . R ptr . 3d 856, 870 ( C a l . C t . A pp. 2009) ( una m bi guous i nt e ntof pa r t i e s w a s tha tde f

e nda nt

“ w oul d c om pl y w i th the s pe c i f i c a t i ons tha t[ pl a i nt i f

f ] pr ovi de d a f

t e rthe a gr e e m e nt w a s s i gne d” ) . T he di s tr i but or s hi p a gr e e m e nt , i nvoi c e s , a nd t e rm s a nd c ondi t i ons of sa l e dra ft ed by F adal supp ortthe di stri ctcourt ’ s c on cl usi on thatthe part i es agre ed t o the t erm s and cond i t i on s post ed on F adal ’ s w ebsi t e. N o rd id th e d is tr ic t c o u r t e rrin c o n c lu d in g th a t th e a rb itr a tio n c lau s e c le a r ly a n d u n m is ta k ab ly d e le g a te d th e q u e s tio n o f a rb itr ab ility to th e a rb itr a to r . See F i rst O pt i ons , 51 4 U . S . at94 4– 45 . F adal ar gu es thatthe di stri ctcourtpl ac ed t oo m uch e m p h a s is o n th e la n g u a g e “a r is in g o u t o f o rr e la tin g to ” in th e a rb itr a tio n c lau s e . H o w e v e r , th e la n g u a g e o f th e a rb itr a tio n c lau s e s h o w s ac le a ra n d u n m is ta k ab le in te n t to d e le g a te q u e s tio n s o f s c o p e to th e a rb itr a to r . Se e id. at9 4 4 . T h e cl au se i nc orpor a t e s the A A A ’ s C om m e r c i a l A rbi tr a t i on R ul e s , w hi c h pr ovi de tha t“ [ t ] he a rbi tr a t ors ha l l ha ve the pow e rt o rul e on hi s orhe row n j ur i s di c t i on, i nc l udi ng a ny obj e c t i ons w i th r e s pe c tt o the e xi s t e nc e , s c ope orva l i di ty of the a rbi tr a t i on a g r e e m e n t.” A A A C o m m e r c ia l A rb itr a tio n R u le s , R - 7 ( a ) .10- 55719 5 T h e d is tr ic t c o u r t d id n o t e rrb y d e c lin in g to c o n s id e re x tr in s ic e v id e n c e . C al i forni a l aw re qu i re s c ou rt s t o acc eptprov i si on al l y e xtri nsi c e vi dence that p u rp o r ts to e x p la in th e m e a n in g o f c o n tr a c t te rm s . See P aci f i c G as & E lec . C o. v. G . W . T hom as D r ay age & R i

ggi ng C o. , 442 P . 2d 641 ( C a l . 1968) . H ow e ve r , the ex trin sic e v id en ce F ad al su b m itted re lated to th e in terp re tati o n o f th e a g re em en t’ s s c ope — aque s t i on f

orthe a rbi tr a t or— a nd nott o the e xi s t e nc e of the a rbi tr a t i on a g r e e m e n t. F a da l ’ s r e m a i ni ng a r gum e nt s a r e i s s ue s f ora rbi tr a t i on. AF F I RME D.