Opinion ID: 484676
Heading Depth: 1
Heading Rank: 5

Heading: Remaining Objections

Text: 23 Appellant's remaining objections to the arbitration award are without merit. We mention them only briefly. Bosarge asserts that he has no duty to repurchase any of the shares of the limited partners because he resigned as general partner of Hugoton in 1980 and transferred his partnership interest to Texas General. 6 The district court properly concluded, however, that this resignation was of no legal consequence because it found that [r]espondent never provided notice to petitioners regarding his resignation or the unilateral transfer of his partnership interest.... 24 The evidence supports the court's determination that BS & K had no actual or constructive notice of Bosarge's resignation. Myron Kove, a partner at BS & K, testified that he believed Bosarge to be Hugoton's general partner at all times relevant to this dispute, and that, although he had contacted Texas General about matters involving the partnership, he had done so only because he considered Texas General to be acting as Bosarge's agent. This conclusion is supported by evidence that Bosarge received a copy of all correspondence BS & K sent to Texas General. 25 Bosarge, on the other hand, failed to produce any documentation to support his alleged resignation. He did testify to giving oral notice of his resignation to two people, but they both were deceased at the time of the trial. Since apparently no one else was informed of Bosarge's resignation, the district court did not err in concluding that there was no effective resignation and that Bosarge continued to be obligated by the repurchase provisions of the partnership agreement. 26 Bosarge also contends the arbitration panel had no authority to make its decision because it had not been convened in accordance with 9 U.S.C. Sec. 4, which provides for a petition to the district court to compel arbitration. 7 The procedural requirements of 9 U.S.C. Sec. 4, however, are permissive, not mandatory. Kentucky River Mills v. Jackson, 206 F.2d 111, 120 (6th Cir.) cert. denied 346 U.S. 887, 74 S.Ct. 144, 98 L.Ed. 392 (1953). The terms of the limited partnership agreement, on the other hand, authorize the party seeking arbitration to proceed without intervention by the district court. The decision to submit a dispute to arbitration is left solely to the agreement of the parties to the contract, and they are bound by its provisions. Commercial Metals Co. v. Balfour, Guthrie, & Co. Ltd., 577 F.2d 264, 266 (5th Cir.1978). Since the district court determined that the actions of BS & K in seeking arbitration complied with the provisions specified in the limited partnership agreement, Bosarge's attack on this basis must fail. 27 Appellant's final contention is that the claims of BS & K constitute claims for the rescission of a security and as such are nonarbitrable under Wilko v. Swan, 346 U.S. 427, 74 S.Ct. 182, 98 L.Ed. 168 (1953). While the original sale of the limited partnership interests constituted a sale of securities, this action only involves a claim for specific enforcement of a contractual right provided for in the limited partnership agreement. The holding of Wilko v. Swan is inapplicable, and the agreement to arbitrate is valid and enforceable. The judgment of the district court is 28 AFFIRMED.