Abdullah Sayid Rajab Al-Rifai & Sons W.L.L. v. McDonnell Douglas Foreign Sales Corp.

988 F. Supp. 1285 (1997)

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Abdullah Sayid Rajab Al-Rifai & Sons W.L.L. v. McDonnell Douglas Foreign Sales Corp.

United States District Court for the Eastern District of Missouri
988 F. Supp. 1285 (1997)

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Facts

Kuwaiti company Abdullah Sayid Rajab Al-Rifai & Sons W.L.L. (ASRR) (plaintiff) sued McDonnell Douglas Foreign Sales Corporation (MDFSC) (defendant), a Virgin Islands company doing business in Missouri, to recover unpaid commissions for the sale of an F-18 aircraft to Kuwait. From 1974 and continuing into the 1990s, ASRR and MDFSC, along with MDFSC’s parent company and a sister-subsidiary of MDFSC known as the McDonnell Douglas International Sales Corporation (MDISCO), entered into a series of representation agreements by which ASRR agreed to provide services in exchange for commissions. In 1994, ASRR filed suit against MDISCO in a Kuwaiti court, alleging that the representation agreements had been wrongfully terminated and that ASRR was owed commissions from the sale of an aircraft. The Kuwaiti court reserved judgment for nearly three years while an accounting of the commissions was taken. The accounting was still in process and the Kuwaiti case still pending when ASRR filed its lawsuit against MDFSC in US federal district court in July 1997. MDFSC moved to have the federal district court proceedings dismissed or stayed as a matter of international abstention and out of deference to the pending Kuwaiti action against MDISCO.

Rule of Law

Issue

Holding and Reasoning (Stohr, J.)

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