Opinion ID: 2995787
Heading Depth: 2
Heading Rank: 4

Heading: Arising Under the License Agreement

Text: Finally, Kidde argues that even if the license agreement is in effect, their claims are not governed by the license agreement because their claims do not arise in connection with the license agreement or with a claimed breach of the license agreement. We will address this issue of contract interpretation de novo. See Keifer Specialty Flooring, Inc. v. Tarkett, Inc., 174 F.3d 907, 909 (7th Cir. 1999). As we consider Kidde’s contention, we bear in mind that “once it is No. 01-1318 11 clear the parties have a contract that provides for arbitration of some issues between them, any doubts concerning the scope of the arbitration clause are resolved in favor of arbitration.” Miller v. Flume, 139 F.3d 1130, 1136 (7th Cir. 1998). Moreover, “a court may not deny a party’s request to arbitrate an issue unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute.” Keifer, 174 F.3d at 909 (quotation omitted). The arbitration provision in this case contemplated that “[a]ny claim or controversy arising between the parties hereto in connection with this Agreement . . . shall be determined by arbitration.” This court has characterized similar provisions as extremely broad and capable of an expanse reach. See id. at 909-10. In Keifer, the relevant arbitration provision stated that “[a]ny controversy or claims arising out of or relating to [the Agreements] shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association.” Id. at 909. There, we noted that “[b]road arbitration clauses . . . necessarily create a presumption of arbitrability.” Id. at 910. We believe that such a presumption arises in this case given the expansive language of the arbitration provision in the Quantum-Fyrnetics license agreement and its similarity to the provision in Keifer. Kidde seems to imply that because its claims arose exclusively from Quantum’s allegedly tortious conduct, its claims arise in tort and therefore should not be bound by contract terms. It is nonsensical for Kidde to argue that its claims are not arising “in connection with the license agreement.” The license agreement specifically permitted Fyrnetics and then Kidde “to make, have made, use, import, export, sell, or offer to sell” products containing Quantum’s CO sensor. Fyrnetics sold CO detectors using CO sensors that Kidde now alleges were defective. The fact that Kidde cast its complaint in tort does not allow it to avoid its 12 No. 01-1318 contractual obligation to arbitrate. See Sweet Dreams Unlimited, Inc. v. Dial-A-Mattress Int’l, Ltd., 1 F.3d 639, 643 (7th Cir. 1993) (“We have routinely held that a party may not avoid a contractual arbitration clause merely by ‘casting its complaint in tort.’ ”).