Justia International Law Opinion Summaries

Articles Posted in Arbitration & Mediation
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Plaintiff filed a complaint against defendant, seeking indemnity and/or contribution based on the damage defendant allegedly caused through gross negligence in removing plaintiff's vessel from a coral reef. At issue was whether the district court properly denied defendant's motion to compel arbitration of the dispute under the Federal Arbitration Act (FAA), 9 U.S.C. 1 et seq., where defendant alleged that the district court erred in refusing to apply English arbitrability law. The court held that based on the Supreme Court's reasoning in First Options of Chicago, Inc. v. Kaplan, courts should apply non-federal arbitrability law only if there was clear and unmistakable evidence that the parties intended to apply such non-federal law. Because there was no clear and unmistakable evidence in this case, federal arbitrability law applied. Under federal arbitrability law, the court's decisions in Mediterranean Enterprises, Inc. v. Ssangyong Construction Co. and Tracer Research Corp. v. National Environmental Services, Co., mandated a narrow interpretation of a clause providing for arbitration of all disputes "arising under" an agreement. Under this narrow interpretation, the present dispute was not arbitrable. Therefore, the court affirmed the district court's judgment. View "Cape Flattery Ltd. v. Titan Maritime, LLC" on Justia Law

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Appellee filed an action against appellants, sisters who were traveling together aboard Pan Am Airways Flight 73 when Libyan terrorists hijacked the plane and held it for sixteen hours on the tarmac in Pakistan, seeking to compel arbitration under the Federal Arbitrarion Act ("Arbitration Act"), 9 U.S.C. 4. While the suit was pending, the United States and Libya reached a diplomatic settlement where Libya agreed to deposit $1.5 billion into a settlement fund and Congress provided for the implementation of the settlement fund for all terrorism-related litigation against Libya in American courts. At issue was whether the district court properly granted a motion to compel arbitration under section 4 of the Arbitration Act. The court affirmed the district court's grant of the motion to compel and held that the Libyan Claims Resolution Act, 28 U.S.C. 1605A, did not prevent the district court from ordering arbitration of the underlying dispute.

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Argentina appealed the district court's dismissal of its motion to extend where Argentina had violated a Bilateral Investment Treaty when it implemented several emergency measures in response to the nation's financial crisis. An arbitration panel determined that Argentina was liable to National Grid PLC, ("National Grid") which had been operating in Argentina under the auspices of the treaty. At issue was whether National Grid forfeited its timeliness defense, whether the district court erred in treating Argentina's motion to extend as moot, and whether the district court erred in ultimately finding service to be untimely. Also at issue was whether the district court erred in granting a confirmation motion without first giving Argentina the opportunity to raise defenses available under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 9 U.S.C. 201-208. The court rejected Argentina's argument that National Grid had forfeited its timeliness defense where it had expressly preserved this defense in the joint stipulation and then raised it in its first responsive pleading. The court also held that the district court had no authority to grant Argentina's motion to extend time to serve notice and therefore acted within its discretion in treating the motion as moot. Absent any evidence of timely service of notice, the court affirmed the dismissal of Argentina's motion to vacate the arbitral awards. The court further affirmed National Grid's cross-motion for recognition of the arbitral award where Argentina had ample time to raise defenses but made no attempt to raise such defects in the district court.View "Argentine Republic v. National Grid PLC." on Justia Law