Commercial Solvents Corp. v. Louisiana Liquid Fertilizer Co.

20 F.R.D. 359 (1957)

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Commercial Solvents Corp. v. Louisiana Liquid Fertilizer Co.

United States District Court for the Southern District of New York
20 F.R.D. 359 (1957)

Facts

Commercial Solvents Corporation (Commercial Solvents) (plaintiff) and Louisiana Liquid Fertilizer Co. (Louisiana Liquid) (defendant) entered a contract containing an arbitration agreement. A dispute arose between the parties, and Commercial Solvents sent a demand for arbitration to Louisiana Liquid. In accordance with the rules of the American Arbitration Association (AAA), Louisiana Liquid sent an answer to Commercial Solvents. Louisiana Liquid also sent a notice of taking depositions of five employees of Commercial Solvents in Louisiana, pursuant to the Federal Rules of Civil Procedure (FRCP). Commercial Solvents brought a motion to vacate the order scheduling depositions with its employees. Louisiana Liquid asserted the depositions were required to adequately prepare for the arbitration proceedings. Louisiana Liquid argued that because the Federal Arbitration Act lacks a procedure for depositions and discovery, Rule 81(a)(3) of the Federal Rules of Civil Procedure authorizes the depositions of the Commercial Solvents employees. Louisiana Liquid asserted the FRCP applied to the arbitration because, save for the arbitration agreement, the federal court would retain jurisdiction over any lawsuit arising out of the controversy between the parties and the FRCP would apply in such a lawsuit.

Rule of Law

Issue

Holding and Reasoning (Becks, J.)

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