Mediterranean Enterprises, Inc. v. Ssangyong Corp.

708 F.2d 1458 (1983)

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Mediterranean Enterprises, Inc. v. Ssangyong Corp.

United States Court of Appeals for the Ninth Circuit
708 F.2d 1458 (1983)

Facts

In May 1978, the Saudi Arabia Royal Commission invited the California corporation Mediterranean Enterprises, Inc. (MEI) (plaintiff) to bid on Middle Eastern residential-building projects in Saudi Arabia. MEI contacted Ssangyong Corp. (defendant) about the invitation, and MEI and Ssangyong entered into an agreement to form a joint venture. The joint-venture agreement contained an arbitration clause, which stated that “any disputes arising hereunder” should be arbitrated in Seoul, Korea. MEI and Ssangyong signed an agreement with Trac Enterprises (Trac), which established that Trac would be the joint venture’s agent in Saudi Arabia. The joint venture was never established, and MEI sued Ssangyong in federal district court for claims related to breach of contract. An interlocutory order was issued to stay the judicial proceedings and refer certain issues raised by MEI’s complaint to arbitration. Ssangyong appealed the interlocutory order, arguing that the district court interpreted the scope of the arbitration clause in the Ssangyong-MEI joint-venture agreement too narrowly and that all the issues raised must be submitted to arbitration.

Rule of Law

Issue

Holding and Reasoning (Nelson, J.)

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