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Ibeto Petrochemical Industry Limited v. Motor Tanker Beffen

United States Court of Appeals for the Second Circuit
475 F.3d 56 (2007)


Facts

Ibeto Petrochemical (Ibeto) (plaintiff) was to receive oil in Nigeria shipped on the Motor Tanker Ship Beffen (Beffen) under a series of charter-party agreements between Chemlube International, Inc. and Bryggen. The oil was damaged by ocean water en route to Nigeria from the United States. The charter-party agreements included arbitration clauses setting the forum in London. Ibeto sued Bryggen and Beffen (defendants) in a Nigerian court. Ibeto also sued in the United States District Court for the Southern District of New York in order to prevent the statute of limitations from running. The defendants filed a motion in the district court to enjoin the proceeding in Nigeria, and Ibeto asked the district court to require the parties to arbitrate in London, pursuant to the forum-selection clause in the charter-party agreements. The district court granted the defendants’ motion, permanently enjoining Ibeto from continuing suit in Nigeria. The district court also ordered the parties to arbitrate in London and stayed proceedings while arbitration took place. Ibeto appealed the district court’s injunction.

Rule of Law

Issue

Holding and Reasoning (Miner, J.)

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