Judgment of 18 July 1987
Italy Court of Bologna
XVII Y.B. Comm. Arb. 534 (1992)
- Written by Mary Katherine Cunningham, JD
Facts
Coveme (plaintiff), an Italian company, and CFI (defendant), a French manufacturer, entered a distribution agreement. The distribution agreement contained a clause providing that the parties would refer all disputes arising from the contract to arbitration before the International Chamber of Commerce. When Coveme terminated the agreement, CFI sought to hold Coveme to the noncompetition clause in the terminated agreement. Coveme responded by filing suit in the Court of Bologna in Italy. Coveme sought a declaration that the noncompetition clause violated the European Community (EC) competition laws. CFI sought a stay pending arbitration. CFI argued that Italian courts lacked jurisdiction because the arbitration clause referred all disputes to the ICC. CFI further asserted Italian law did not apply to the issue of the arbitrability of the dispute as the contract was concluded in Paris.
Rule of Law
Issue
Holding and Reasoning (Per curiam)
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