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Stolt-Nielsen Transp. Group, Inc. v. Celanese AG

Stolt-Nielsen Transp. Group, Inc. v. Celanese AG

United States Court of Appeals for the Second Circuit

July 14, 2005, Argued ; November 21, 2005, Decided

Docket No.04-6373-CV

Opinion

 [*569]  Kravitz, District Judge:

Stolt-Nielsen SA, Stolt-Nielsen Transportation Group, Ltd., Stolt-Nielsen Transportation Group, BV, and Stolt-Nielsen Transportation Group, Inc. (collectively, "Stolt") appeal from an order of the United States District Court for the Southern District of New York (Jed. S. Rakoff, District Judge) granting a motion to enforce four subpoenas served [**2]  on Stolt's custodians of records and denying Stolt's request to quash a subpoena served on its former counsel. The subpoenas were issued by an arbitration panel presiding over an arbitral proceeding to which neither Stolt nor its former counsel is a party. Section 7 of the Federal Arbitration Act (FAA) provides that arbitrators "may summon in writing any person to attend before them . . . as a witness and in a proper case to bring with him or them any book, record, document, or paper which may be deemed material as evidence in the case." 9 U.S.C. § 7. We have previously stated that "open questions remain as to whether § 7 may be invoked as authority for compelling pre-hearing depositions and pre-hearing document discovery, especially where such evidence is sought from non-parties." Nat'l Broadcasting Co., Inc. v. Bear Stearns & Co., 165 F.3d 184, 188 (2d Cir. 1999). In this appeal, Stolt asks us to resolve the question left open in Bear Stearns and hold that Section 7 does not authorize arbitrators to issue subpoenas to compel pre-hearing depositions and document discovery from non-parties.

We decline to decide whether Section 7 authorizes [**3]  arbitrators to issue subpoenas to non-parties to compel pre-hearing discovery, because there is no occasion to do so in this case. Contrary to Stolt's claim, the subpoenas in question did not compel pre-hearing depositions or document testimony and documents to the arbitration panel itself at a hearing held in connection with the arbitrators' consideration of the dispute before them. The plain language of Section 7 authorizes granting the motion to compel or in denying the motion to quash.

BACKGROUND

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430 F.3d 567 *; 2005 U.S. App. LEXIS 25053 **; 2005-2 Trade Cas. (CCH) P75,049; 2005 AMC 2777

STOLT-NIELSEN SA, STOLT-NIELSEN TRANSPORTATION GROUP LTD. (SNTG), STOLT-NIELSEN TRANSPORTATION GROUP, BV, and STOLT-NIELSEN TRANSPORTATION GROUP, INC., Appellants, v. CELANESE AG, CELANESE, LTD., and MILLENIUM PETROCHEMICALS, INC., Defendants-Claimants-Appellees, CELANESE CHEMICALS EUROPE GMBH, CELANESE PTE, LTD, GRUPO CELANESE SA, and CORPORATIVOS CELANESE S. de RL de C.V., Claimants-Appellees, ODFJELL ASA, ODFJELL USA, INC., ODFJELL SEACHEM AS, JO TANKERS AS, JO TANKERS, BV, AND JO TANKERS, INC., Plaintiffs.

Prior History:  [**1]  Appeal from a judgment of the United States District Court for the Southern District of New York (Jed S. Rakoff, District Judge) granting Appellees' motion to enforce, and denying Appellants' motion to quash, subpoenas issued by an arbitration panel that required non-parties to provide testimony and documents at an evidentiary hearing before the arbitration panel.

Odfjell ASA v. Celanese AG, 348 F. Supp. 2d 283, 2004 U.S. Dist. LEXIS 25612 (S.D.N.Y., 2004)

Disposition: The judgment of the District Court is affirmed.

CORE TERMS

arbitrators, subpoenas, district court, non-party, arbitration panel, Claimants, documents, witnesses, discovery, summon, parties, merits, authorizes, Tankers, subject matter jurisdiction, depositions, pre-hearing, compliance, contempt, appellate jurisdiction, hearings, attend, questions, invoked, maritime contract, proceedings, injunction, immediately appealable, pendent jurisdiction, arbitration hearing

Business & Corporate Compliance, Alternative Dispute Resolution, Arbitration, Federal Arbitration Act, Civil Procedure, Discovery & Disclosure, Discovery, Subpoenas, Jurisdiction, Subject Matter Jurisdiction, Federal Questions, Admiralty & Maritime Law, Practice & Procedure, Jurisdiction, Constitutional Authority, Federal Arbitration Act, Scope, Preliminary Considerations, Appeals, Appellate Jurisdiction, Final Judgment Rule, Interlocutory Orders, Supplemental Jurisdiction, Appellate Jurisdiction, Jurisdiction Over Actions, Standards of Review, De Novo Review, Discovery & Disclosure