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K.K. Amerido Nihon v. Drew Chemical Corp.

1981 Quarterly of the Japan Commercial Arbitration Association (Nos. 81–82) 1 (1981)

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K.K. Amerido Nihon v. Drew Chemical Corp.

Yokohama District Court
1981 Quarterly of the Japan Commercial Arbitration Association (Nos. 81–82) 1 (1981)

Facts

K.K. Amerido Nihon (Amerido) (plaintiff), a Japanese company, entered into a written contract to be the exclusive sales agent and products distributor for Drew Chemical Corporation (Drew) (defendant) in Japan. The written contract contained a broad arbitration clause that stated that all disputes arising from or in relation to the contract may, at the option of either party, be submitted to arbitration in New York. The written contract also provided that the contract was governed by New York law. After the written contract term expired, the written contract was not formally renewed, but Amerido and Drew continued to act as though the written contract were still in effect. After Drew established a subsidiary in Japan, Drew no longer had a need for Amerido to serve as its agent in Japan. Drew issued a notice to Amerido that the written contract was terminated. Amerido filed suit against Drew in Japan, seeking damages sustained as a result of Drew’s termination of the written contract. Drew moved to dismiss the action based upon the arbitration clause. Amerido argued that Drew had no right to enforce the arbitration clause because Drew had no claim against Amerido. Amerido also argued that the arbitration clause was unenforceable because the written contract had expired.

Rule of Law

Issue

Holding and Reasoning ()

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