Downey v. Christensen

In Downey v. Christensen, 251 Mont. 386, 825 P.2d 557 (1992), the plaintiff filed suit over the alleged breach of a donut shop franchise agreement. After the plaintiff served discovery requests and the defendants responded, the defendants sought to enforce an arbitration clause in the franchise agreement. The District Court refused, holding that by answering discovery, the defendants had waived arbitration. The Montana Supreme Court reversed, finding that the lack of prejudice to the plaintiff showed a lack of waiver and ordered arbitration. Downey, 251 Mont. at 391.