Filanto, Societa per Azioni v. Chilewich International Corporation
United States District Court for the Southern District of New York
789 F. Supp. 1229 (1992)
In March 1990, Chilewich International Corp. (Chilewich) (defendant) sent a memorandum agreement for signature confirming that Filanto (plaintiff) would deliver 150,000 pairs of shoes to Chilewich. The two parties had extensive prior dealings. The agreement required Chilewich to open a letter of credit in favor of Filanto. A provision of the agreement incorporated a prior contract entered between Chilewich and Russia for Chilewich to deliver shoes to Russia, which required disputes to be settled by arbitration in Moscow. In May 1990, Chilewich established a letter of credit in favor of Filanto. The letter of credit mentioned the Russian contract. In August 1990, Filanto returned the signed agreement with a cover letter stating all terms were agreed to except several provisions incorporated from the Russian contract, including the arbitration provision. Chilewich failed to purchase 90,000 pairs of shoes. Filanto sued for breach of contract. Chilewich moved to stay the court case pending litigation. Filanto moved to enjoin arbitration.
Rule of Law
Holding and Reasoning (Brieant, C.J.)
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