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Case Law Update: Counter Claims in Arbitration

A. Bauer Mechanical, Inc. V. Joint Arbitration Board of the Plumbing Contractors’ Association, Nos. 06-3936 et al. Cons. (3/25/09) is a seventh circuit decision that found that the district court did not err in granting defendant’s motion for default judgment on its counterclaim to enforce arbitration award where plaintiff failed to file response to counterclaim that had been attached to motion seeking leave to file same instanter. Dist. Ct. could properly enter default judgment where record showed that Dist. Ct. recognized counterclaim and directed plaintiff to file response to same, and that plaintiff subsequently failed to file timely response. Ct. rejected plaintiff’s argument that federal court does not have discretion to recognize pleading attached to motion seeking leave to file same instanter. This case will have an effect of all personal injury claims.