The US IA Digest collects in one place important decisions on US international arbitration case law issued since January 1, 2016, compiled and organized into categories that are most relevant and useful to practitioners and other interested parties. The Digest will be updated on a rolling basis as new decisions are issued.
Court granted petition to confirm arbitration award, finding that respondent failed to prove grounds under Article V of the New York Convention to refuse or defer the recognition of the award. Court denied petitioner’s request for attorneys’ fees, finding that respondent’s actions did not warrant that exceptional award but found petitioner’s expenses would be allowed to the extent that costs are available to the prevailing party.
Chicken Mart, Inc. v. Independent Specialty Insurance Company, No. 23-CV-06661-EEF-JVM (E.D. La. Feb. 23, 2024)
Court granted motion to compel arbitration and stayed litigation pending arbitration, finding that the requirements of the New York Convention were satisfied. Court compelled arbitration between foreign and domestic defendants because plaintiff was alleging intertwined conduct on the part of all defendants.
Apex Hospitality Group, LLC v. Independent Specialty Insurance Company, No. 23-CV-02060-JTM-JVM (E.D. La. Feb. 23, 2024)
Court granted motion to compel arbitration, finding that the requirements of the New York Convention were satisfied. Court found that plaintiff was equitably estopped from objecting to arbitration against domestic defendant, a non-signatory to the arbitration agreement, because plaintiff alleged conduct that was interdependent and concerted with signatory foreign defendant. Court also held that arbitration clauses are forum or venue selection clauses and application of equitable estoppel was thus not precluded by Louisiana law.
Stonex Markets LLC v. Cooperativa de Caficultores del Suroeste de Antioquia, No. 23-CV-00513-JGLC-OTW (S.D.N.Y. Feb. 21, 2024)
No. 23-CV-00513-JGLC-OTW (S.D.N.Y. Feb. 21, 2024)
Court accepted magistrate judge’s report and recommendation to enter a motion for default judgment to confirm arbitration award finding the recommendation to be well reasoned and grounded in fact and law.
Court found under § 4 of the FAA, that it may grant an order to compel arbitration where a duly initiated arbitral proceeding was previously administratively closed due to the opposition’s failure to pay its fees. To hold otherwise would lead to a “never-ending game of cat-and-mouse” where the parties continue to initiate arbitration proceedings and one-party refuses to pay.
Court granted motion for an anti-suit injunction against defendant where a foreign litigation would frustrate the arbitration process by seeking to re-litigate issues already resolved by an arbitral tribunal and undermine the court’s confirmation of the arbitration award.
Bayport Financial Service (USA) Inc. v. Bayboston Managers, LLC, No. 22-CV-21306-JEM (S.D. Fla. Jan. 24, 2024)
Magistrate judge recommended that motion to compel arbitration be granted pursuant to the New York Convention, finding that an alter ego analysis was inapplicable here and thus, one defendant’s engagement in litigation could not waive the arbitral rights of another defendant.
Zhongtie Dacheng (Zhuhai) Investment Management Co Ltd v. Yan, No. 8:22-CV-00461-KK-ADS (C.D. Cal. Jan. 12, 2024)
Court confirmed an arbitral award pursuant to the New York Convention, holding that service was proper because respondents were mailed notice of the proceedings to their last known addresses listed on publicly available documents and their government-issued IDs.
Court granted motion to compel arbitration pursuant to the New York Convention for counts falling within the parties’ mandatory arbitration clause between plaintiff and one of the defendants but not the other. Court found that the arbitration clause at issue was broad enough to encompass the plaintiff’s negligence claims, as the claims could not exist absent her employment and were premised on the employer’s duty to provide reasonable care and a safe environment in the workplace. Court found the defendant, non-signatory to the arbitration agreement, had not made a sufficient showing of equitable estoppel such that it could compel arbitration of plaintiff’s claims against it.