Builders Federal (H.K.) Ltd v. Turner Construction

655 F. Supp. 1400 (1987)

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Builders Federal (H.K.) Ltd v. Turner Construction

United States District Court for the Southern District of New York
655 F. Supp. 1400 (1987)

Facts

Turner Construction and Turner International (defendants) owned Turner East Asia (TEA) (defendant), a Singaporean company serving as a main contractor for a major construction project in Singapore. Builders Federal (H.K.) Ltd. (Builders Federal) (plaintiff) was a Hong Kong corporation, serving as a subcontractor to TEA. TEA and Builders Federal had a subcontract agreement with an arbitration clause providing for arbitration in Singapore. The subcontract also provided that if a dispute arose between TEA and Builders Federal with the same character as a dispute between TEA and “the Employer under the Main Contract,” TEA and Builders Federal agreed to refer the dispute to arbitration “pursuant to the terms of the Main Contract.” Turner was not a party to the subcontract. Disputes arose during the construction project in Singapore, and TEA ceased work. Builders Federal initiated a suit in Singapore against TEA seeking to compel arbitration. TEA refused to arbitrate, arguing the dispute had to be heard pursuant to an arbitration clause in its main contract. Builders Federal filed a petition in United States District Court for the Southern District of New York to compel Turner and TEA to proceed with arbitration in Singapore. Builders Federal sought expedited discovery to assist in their petition. Builders Federal argued that Turner Construction and Turner International were liable for TEA’s obligation to arbitration because TEA was Turner’s alter ego. Turner Construction and Turner International asked for the district court to either dismiss the petition or to stay the lawsuit pending the completion of arbitration proceedings in Singapore.

Rule of Law

Issue

Holding and Reasoning (Haight, J.)

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