JLM Industries, Inc. v. Stolt-Nielsen SA
United States Court of Appeals for the Second Circuit
387 F.3d 163 (2004)
- Written by Heather Whittemore, JD
Facts
Stolt-Nielsen SA and three other corporations (collectively, the owners) (defendants) located in various countries owned parcel tankers used to transport liquid chemicals, collectively controlling two-thirds of the global market. JLM Industries, Inc. (JLM) (plaintiff) was in the business of buying and selling chemicals. JLM leased space on tankers owned by the owners to transport its chemicals. The standard contract governing these shipping transactions was called the ASBATANKVOY (the contract) and was written by the Association of Ship Brokers & Agents (U.S.A.), Inc. The contract included an arbitration clause explaining that all disputes arising out of transactions governed by the contract had to be decided by an arbitration board consisting of arbitrators appointed by the parties in the dispute. JLM filed a class action alleging that the owners had engaged in several Sherman Act violations, including horizontal price-fixing. The owners moved to compel arbitration of JLM’s claims according to the contract’s arbitration clause. The district court denied the motion, holding that the horizontal price-fixing claim was outside the scope of the arbitration clause because resolving the claim did not require an interpretation of the contract. The owners appealed.
Rule of Law
Issue
Holding and Reasoning (Pooler, J.)
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