Cunard Steamship Company v. Salen Reefer Services AB
United States Court of Appeals for the Second Circuit
773 F.2d 452 (1985)
- Written by Alex Ruskell, JD
Facts
Salen Reefer Services AB (Salen) (defendant), a Swedish business, filed for bankruptcy in Sweden and obtained a stay on creditor actions. A month later, Cunard Steamship Company (Cunard) (plaintiff) obtained an order of attachment against Salen’s assets from the United States District Court for the Southern District of New York. The underlying contract between Cunard and Salen provided for arbitration in England for any dispute. Salen moved to dissolve Cunard’s attachment, and the court ruled in Salen’s favor. The court held that the public policy of the United States would be furthered by granting comity to the Swedish court’s stay on creditor actions during the Swedish bankruptcy proceeding. Cunard appealed, arguing that the Swedish bankruptcy court lacked in personam jurisdiction over Cunard and in rem jurisdiction over the attached property. As a general creditor, Cunard believed it could attach funds to secure payment.
Rule of Law
Issue
Holding and Reasoning (Re, C.J.)
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