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InterChem Asia 2000 PTE. Ltd. v. Oceana Petrochemicals AG

373 F. Supp. 2d 340 (2005)

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InterChem Asia 2000 PTE. Ltd. v. Oceana Petrochemicals AG

United States District Court for the Southern District of New York
373 F. Supp. 2d 340 (2005)

Facts

InterChem Asia 2000 PTE. Ltd. (InterChem) (plaintiff) and Oceana Petrochemicals AG (Oceana) (defendant) were parties to a contract that contained an arbitration clause. The arbitration clause provided that any disputes arising out of the contract shall be resolved by arbitration and that the American Arbitration Association (AAA) rules would apply. After a dispute arose, InterChem and Oceana went to arbitration. InterChem and Oceana submitted requests for attorney’s fees but did not explicitly authorize the arbitrator to impose such a sanction on the parties’ lawyers. Likewise, the arbitration clause and the AAA rules did not authorize the arbitrator to sanction the lawyers. The arbitrator sanctioned both Oceana and Oceana’s attorney, Richard DiDonna, for not timely producing documents during the arbitration. As a sanction, the arbitrator directed Oceana and DiDonna to pay InterChem’s legal fees. InterChem motioned the court to confirm the arbitration award. Oceana moved to vacate the sanction award.

Rule of Law

Issue

Holding and Reasoning (Marrero, J.)

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