B.V. Bureau Wijsmuller v. United States of America as Owner of the Warship Julius A. Furer

1976 A.M.C. 2514 (1976)

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B.V. Bureau Wijsmuller v. United States of America as Owner of the Warship Julius A. Furer

United States District Court for the Southern District of New York
1976 A.M.C. 2514 (1976)

Facts

On June 1974, the Julius A. Furer, a warship of the United States Navy, became stranded off the coast of the Netherlands. B.V. Bureau Wijsmuller (Wijsmuller) (plaintiff), a maritime salvage company, directed its salvage vessels to assist the stranded warship. Before assisting the Julius A. Furer, an employee of Wijsmuller obtained the signature of the warship’s captain on a Lloyd’s open form salvage agreement (LOF). The LOF contained arbitration clauses requiring the parties to submit the salvor’s claim for salvage compensation to binding arbitration in London under English law. After the Julius A. Furer grounded, Wijsmuller filed a complaint in the United States District Court for the Southern District of New York under the Public Vessels Act. Wijsmuller also reserved the right to proceed to arbitration under the LOF. Wijsmuller subsequently filed for a motion to compel the United States to proceed to arbitration in London in accordance with the terms of the LOF. In response to the motion to compel arbitration, the government of the United States (the United States) (defendant) argued the court needed to deny the motion to compel arbitration because the United States was not bound by the LOF or the arbitration provisions. The United States, instead, asked for the matter to proceed in the district court pursuant to the Public Vessels Act. Wijsmuller countered that the United States was bound to arbitrate under the agreement signed by the captain of the Julius A. Furer and under 46 U.S.C. § 786.

Rule of Law

Issue

Holding and Reasoning (Haight, J.)

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