Brandeis Intsel Ltd. v. Calabrian Chemicals Corp.

656 F. Supp. 160 (1987)

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Brandeis Intsel Ltd. v. Calabrian Chemicals Corp.

United States District Court for the Southern District of New York
656 F. Supp. 160 (1987)

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Facts

Brandeis Intsel Limited (Brandeis) (plaintiff), an English company, entered into an agreement with Calabrian Chemicals Corp. (Calabrian), a New York corporation, for the purchase of cuprous chloride. The contract contained an arbitration clause requiring arbitration before the London Metal Exchange. Calabrian shipped the chemical by boat, and upon the boat’s arrival at port, it was discovered that part of the shipment was damaged. Brandeis rejected the shipment in its entirety and requested a replacement. Calabrian refused the rejection and replacement. Brandeis commenced arbitration proceedings against Calabrian in England. The arbitral panel issued an award in favor of Brandeis. Brandeis filed an action in United States district court to enforce the award, and Calabrian filed a cross-motion to vacate the award on the grounds that the arbitration panel acted in manifest disregard for the law, citing the United States Supreme Court holding in Wilko v. Swan, and arguing that this defense came within the purview of the public-policy exception to avoid enforcement of foreign arbitral awards under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention). Calabrian contended that the English arbitrators incorrectly applied sales law to Brandeis’s claim.

Rule of Law

Issue

Holding and Reasoning (Haight, J.)

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