CHIRON CORPORATION, a Delaware corporation, Plaintiff-Appellee, v. ORTHO DIAGNOSTIC SYSTEMS, INC., a New Jersey corporation, Defendant-Appellant., 207 F.3d 1126

Summary

The parties undertook a joint business arrangement aimed at developing, marketing, and selling plaintiff's HCV and AIDS tests. Plaintiff assumed primary responsibility for research and manufacturing while defendant assumed an exclusive license to the technology and primary responsibility for product development, distribution, marketing, and sales. In 1994 a dispute arose and defendant invoked the arbitration provision in the parties' agreement. An arbitrator determined the express terms of their agreement favored defendant; the decision was final and binding. Plaintiff subsequently sought a second arbitration, but defendant refused on the ground that the new claims were precluded from arbitration under res judicata. Applying federal law, the district court concluded the res judicata defense was itself arbitrable and granted plaintiff's motion to compel arbitration. The appellate court affirmed, holding arbitration provision bound arbitration of any dispute, including the res judicata ...