Not so, Attitude Coffee says, it's the Utah java seller that's behaving like an ass.

The two are locked in a dispute over how to end a franchise and merchandise agreement: BACH says the appropriate forum is before an arbitrator, but Attitude counters the dispute should be heard by a judge in an Alberta, Canada, courtroom.

On Friday, lawyers argued before a federal judge in Salt Lake City over BACH's request for an arbitration order. U.S. District Judge Bruce Jenkins requested more information and set another hearing for Nov. 15.

BACH, a franchise chain of coffee shops in 10 states and Canada, was founded in 1989 in Hawaii. In 1995, a Utah resident bought the company and established its headquarters in Salt Lake City. The name refers to the donkeys used to harvest coffee in the Aloha State.

BACH contends Attitude and its sister company, Bad Ass Enterprises (BAE), had agreed in 2000 to operate franchises and distribute its merchandise in Canada, but had stopped paying royalties. In August, BACH filed a petition in U.S. District Court requesting arbitration.

The Utah company also claims the Canadian enterprises violated a noncompete provision by opening a new store.

Attitude and BAE deny the allegations and insist BACH unilaterally added unacceptable terms to a new agreement the two negotiated last spring. At that point, the Canadian companies say, they declined to sign the agreement and ended their arrangement with BACH.

At Friday's hearing, Richard Burbidge, an attorney for BACH, said contracts between the two sides specified that arbitration would settle any conflicts.

"Before any dispute, these two parties sat down - maybe sipping coffee, perhaps not - and agreed to this," he told Jenkins.

Ronald Price, a Salt Lake City lawyer representing Attitude, responded that picking a forum ahead of time for settling differences is contrary to Canadian law. He also disputed there was even a valid provision requiring arbitration.

pmanson@sltrib.com