According to the Third Circuit, two months may be enough, at least on the very specific facts in Supermedia v. Affordable Electric, Inc., 2014 WL 1690749 (3d Cir. April 30, 2014; 1.usa.gov/1oX5w4n). Supermedia sued Affordable Electric (AE) in district court, alleging breach of a contract for advertising services. Over a period of nearly one year, AE moved unsuccessfully for dismissal, answered the complaint, and participated in discovery, all without raising the existence of an arbitration agreement as an affirmative defense. One defense AE did raise was that Martin Morley, who had signed the contract on behalf of AE, did not have authority to bind the company. Several months after its first suit, AE also sued Morley directly for breach of warranty based on representations he made in forming the advertising contract, and the district court consolidated the cases.
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