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Louis Dreyfus Negoce S.A. v. Blystad Shipping & Trading, Inc.

Louis Dreyfus Negoce S.A. v. Blystad Shipping & Trading, Inc.

United States Court of Appeals for the Second Circuit

October 24, 2000, Argued ; June 7, 2001, Decided

Docket No. 00-7382

Opinion

 [*220]  CARDAMONE, Circuit Judge:

When changing horses in midstream much mischief may occur, outweighing the supposed advantages. In this appeal, the port of destination for an international shipment of cargo was changed in mid-ocean, so to speak. But the result -- as the facts here attest -- was the same as when changing horses in midstream.

Louis Dreyfus Negoce S.A. (Dreyfus [**2]  or appellant) appeals the February 29, 2000 order of the United States District Court for the Southern District of New York (Scheindlin, J.), which denied its motion to stay a New York arbitration in favor of proceedings in London before the High Court of Justice, Queens Bench Division. Dreyfus had a contract to deliver soyabean oil to China and needed a ship to transport the cargo. It therefore entered into a tanker voyage charter party with Blystad Shipping & Trading, Inc. (Blystad or charterer), a vessel charterer. During the voyage, Dreyfus requested that Blystad change the cargo discharge port, and issued letters of indemnity to the charterer for any liability that acquiescence to this request might engender.

When the chartered vessel was detained at the new discharge port for three months, Blystad sued Dreyfus in London on the letters of indemnity. A week after the charterer commenced the London lawsuit, it sought to enforce a provision of the charter party calling for arbitration of disputes between the signatories in New York. Dreyfus resisted arbitration in New York, contending that Blystad's claim must be brought under the letters of indemnity, rather than the charter party. [**3]  Accordingly, Dreyfus asked the district court to stay the New York arbitration. When that request was denied, this appeal ensued.

BACKGROUND

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252 F.3d 218 *; 2001 U.S. App. LEXIS 11810 **; 2001 AMC 1939

LOUIS DREYFUS NEGOCE S.A., Petitioner-Appellant, v. BLYSTAD SHIPPING & TRADING INC., Respondent-Appellee.

Subsequent History:  [**1]  Certiorari Denied November 13, 2001, Reported at: 2001 U.S. LEXIS 10364.

Prior History: Louis Dreyfus Negoce S.A. appeals the district court's denial of its petition, which had sought: (1) a declaration that a claim brought against it by a vessel charterer was not subject to arbitration in New York; (2) a stay of further proceedings in the New York arbitration; and (3) the enforcement of an English choice of law/choice of forum provision contained in letters of indemnity that it had issued to the charterer.

Disposition: Affirmed.

CORE TERMS

arbitration, charter, indemnity, letters, arbitration clause, ports, vessel, charter party, parties, cargo, collateral, voyage, original bill, soyabean, disputes, lading, oil, bill of lading, district court, indemnification, obligations, implicate, waived, broad arbitration clause, right to arbitration, scope of arbitration, termination, delivery, proceedings, declaring

Admiralty & Maritime Law, Arbitration, General Overview, Civil Procedure, Appeals, Standards of Review, De Novo Review, Business & Corporate Compliance, Alternative Dispute Resolution, Arbitrability, International Law, Dispute Resolution, Arbitration & Mediation, Agreements, Federal Arbitration Act, Arbitration Agreements, Contracts Law, Contract Conditions & Provisions, Arbitration Clauses, Comity Doctrine, Areas of Law, Commercial Transactions, International Trade Law, International Commercial Arbitration, Arbitration, Labor & Employment Law, Collective Bargaining & Labor Relations, Labor Arbitration, Enforcement, Pretrial Matters, Validity of ADR Methods, Governments, Courts, Judicial Precedent, Waiver