Dynegy Midstream Services v. Trammochem

451 F.3d 89 (2006)

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Dynegy Midstream Services v. Trammochem

United States Court of Appeals for the Second Circuit
451 F.3d 89 (2006)

Facts

Trammochem (defendant) had a contract with A.P. Moller and Igloo Shipping (vessel owners) (defendants) to charter a vessel for transporting cargo from Houston, Texas, to Belgium. The contract contained an arbitration clause requiring Trammochem and the vessel owners to arbitrate any disputes in New York. Dynegy Midstream Services (DMS) (plaintiff) provided certain facilities and supplies for services performed on Trammochem’s chartered vessel. After the cargo was shipped to Belgium, a dispute arose between Trammochem and the vessel owners due to contamination allegedly caused by DMS. Trammochem and the vessel owners went to arbitration in New York. A.P. Moller claimed that DMS was responsible for the losses and demanded indemnification from DMS, but DMS refused to participate in the arbitration. The arbitrators issued a subpoena directing DMS, which had no connection to New York, to produce documents at a Houston office. The subpoena was served upon a registered agent of DMS in Houston. DMS refused to comply. Trammochem and the vessel owners motioned the district court in New York to compel DMS’s compliance. DMS opposed the motion, arguing that the district court lacked personal jurisdiction over DMS. The district court granted the motion. DMS appealed.

Rule of Law

Issue

Holding and Reasoning (Pooler, J.)

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