Anhui a Chinese company contracted to sell dyed yarn to Hart

    Anhui a Chinese company contracted to sell dyed yarn to Hart an American company. The contract contained a clause requiring arbitra- tion of disputes before the China Council forthe Promotion of International Trade in Beij- ing. When a dispute arose and Hart refused to pay Anhui it began arbitration proceedings. Hart did not respond but sued Anhui in fed- eral court in the United States. Hart claimed the arbitration clause was not enforceable be- cause arbitration in Beijing would be a hard- ship and even if it were not the dispute was over the validity of the contract itself an issue of contract law not a payment dispute. Since that was a legal matter it could be litigated. What resulted in federal court?

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