Deiulemar Compagnia Di Navigazione v. M/V Allegra

Deiulemar Compagnia Di Navigazione (Deiulemar) (plaintiff) contracted with Pacific Eternity and Golden Union Shipping Company (collectively, Pacific) (defendants) to charter Pacific’s ship for the transport of equipment. Pacific guaranteed that the ship traveled at 12–13 knots. The parties’ agreement included an arbitration provision for disputes to be resolved by arbitration in London. During transport, the ship failed to reach 12 knots, requiring mechanical repairs. At the end of Deiulemar’s voyage, Pacific intended to repair the ship and sail to international waters. Deiulemar requested permission to allow its marine expert to board the ship to determine the cause of the reduced speed. Pacific denied Deiulemar’s request. Deiulemar filed a Rule 27 petition seeking an order to compel the inspection to preserve evidence in anticipation of arbitration on its breach-of-contract claim. Pacific moved to dismiss the petition, arguing that the discovery sought by Deiulemar could be requested during the London arbitration, which Pacific initiated. The district court granted Deiulemar’s petition and allowed the inspection. The district court retained the evidence collected under seal. Pacific appealed, arguing that the petition was erroneously granted in violation of Federal Rule of Civil Procedure (FRCP) 81, which stated the types of proceedings the rules applied to. Pacific also argued that Deiulemar failed to establish subject-matter jurisdiction for its claims and was using the petition to uncover new evidence.