Hoogovens Ijmuiden Verkoopkantoor Bv v. MV Sea Cattleya

Van Ommeren (defendant) agreed to ship steel coils to the company that owned the MV Sea Cattleya (the company) (plaintiff) from the Netherlands. In January 1989, the parties entered a written contract in Ijmuiden, Netherlands, agreeing to ship the steel coils to Bridgeport, Connecticut. The written agreement contained Clause 2 stating “general average and arbitration [was] to be settled in the Netherlands.” The company discovered the steel coils were damaged during the shipping to the United States, and a dispute arose between the parties about the damage, culminating in the company initiating an admiralty action. Van Ommeren sought a stay of the proceedings pursuant to the New York Convention and to compel arbitration between the parties in the Netherlands. Van Ommeren further argued that under Oriental Commercial & Shipping Co. v. Rosseel NV, the parties must submit all disputes arising in connection with the written agreement to arbitration due to the terms of Clause 2 of the agreement from January 1989. The company countered that the clause only states the location for any arbitration that the parties voluntarily decide to enter or for any arbitration required by another contract clause. The company alternatively argued that Clause 2 only requires arbitration in the Netherlands for general average claims and that Van Ommeren is not making such claims here.