Koch Fuel International Inc. v. M/V South Star

118 F.R.D. 318 (1987)

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Koch Fuel International Inc. v. M/V South Star

United States District Court for the Eastern District of New York
118 F.R.D. 318 (1987)

Facts

Koch Fuel International (Koch Fuel) (plaintiff) and M/V South Star (South Star) entered a contract with an arbitration agreement. A dispute arose between the parties about cargo oil, and on December 28, 1987, Koch Fuel filed a motion seeking an order allowing expedited discovery of South Star’s ship. The district court signed the order given Koch Fuel’s representation that the ship was due to leave the United States and that the arrest and discovery were necessary to substantiate the allegations that the South Star had converted a portion of Koch Fuel’s cargo of fuel oil. In response, South Star filed a motion to vacate the order for the arrest and the discovery. On December 29, 1987, the parties appeared before the district court. South Star asserted that the parties’ arbitration agreement provided for arbitration in London under English law and objected to Koch Fuel’s request to depose certain foreign crew members. South Star argued the court should not allow the depositions because depositions are not utilized under English arbitration law. South Star further argued the vessel’s records and the inspection were sufficient to allow Koch Fuel to establish its claims in arbitration. Koch Fuel countered that the records and inspection were insufficient and that the depositions of a small group of those with knowledge concerning the shipment is necessary to prove its claims. Koch Fuel asserted, without depositions, the testimony of these individuals would be unavailable in arbitration or in any other proceeding. Koch Fuel further asserted that the deposition was seeking certain targeted information based on information Koch Fuel already obtained from certain crew members supporting its position. Koch Fuel also noted it would complete the depositions in one day, allowing for the release of the merchant vessel.

Rule of Law

Issue

Holding and Reasoning (Dearie, J.)

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