The District Court granted the motion to compel arbitration of the insurance dispute between the parties, finding that the four jurisdictional requirements for compelling arbitration under the New York Convention were met: there was an arbitration agreement in writing, providing for arbitration in a Convention State (the United States) and arising out of a commercial legal relationship, and at least one of the parties was not a US-citizen. Sacred Heart argued that there was no valid arbitration agreement because the endorsement and service of suit clause in the insurance policy changed the terms of the policy, meaning that the defendants had agreed to litigate in court, but the Court noted that a similar argument had been rejected by the Fifth Circuit.