Europcar Italia, S.p.A. v. Maiellano Tours, Inc.

Europcar Italia, S.p.A. (Europcar) (plaintiff) filed an action against Maiellano Tours, Inc. (Maiellano) (defendant) to enforce an arbitral award granted to Europcar by an Italian arbitration panel and confirmed by an Italian court. The arbitral award arose from a business agreement between Europcar and Maiellano by which Europcar provided rental-car services to Maiellano’s tourist-clients who were visiting Italy. The agreement included a clause that mandated arbitration of disputes and selected Italian law to govern the arbitration. A dispute regarding entitlement to tax refunds arose between Europcar and Maiellano. After failing to agree on a sole arbitrator, the parties agreed on a supplemental arbitration clause that provided for a three-arbitrator panel. The panel issued an award in favor of Europcar, and Europcar filed an action in Italian court to confirm and enforce the award. The Italian court ruled in favor of Europcar, but Maiellano appealed. While the appeal in Italy was pending, Europcar filed an action in federal district court to obtain US recognition and enforcement of the arbitral award, pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the convention). Maiellano opposed enforcement by the federal court on the ground that the district court lacked subject-matter jurisdiction or, alternatively, that the federal court should adjourn its proceedings until after Maiellano’s appeal in Italian court had been decided. The district court declined to adjourn, in deference to the Italian appeal, and granted summary judgment to Europcar. Maiellano appealed.