Oriental Commercial & Shipping Co. (U.K.) Ltd v. Rosseel, NV

609 F. Supp. 75 (1985)

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Oriental Commercial & Shipping Co. (U.K.) Ltd v. Rosseel, NV

United States District Court for the Southern District of New York
609 F. Supp. 75 (1985)

Facts

Rosseel N.V. (Rosseel) (plaintiff) entered a contract to purchase oil from Oriental Commercial & Shipping Cp. (U.K.) Ltd. (Oriental U.K.) (defendant). As documented by a telex from Oriental U.K. to Rosseel, the contract contained an arbitration provision stating “Arbitration: If required in New York City.” According to Rosseel, the oil was never delivered by Oriental U.K. Rosseel served a Notice of Intent to Arbitrate upon Oriental U.K. and Oriental Commercial and Shipping Co., Ltd. (Oriental S.A.) (defendant). The Bokhari family owned both Oriental U.K. and Oriental S.A., though neither corporation owned shares of the other corporation. Oriental S.A. was not a signatory to the contract of sale between Oriental U.K. and Rosseel. Oriental S.A. responded with a petition to stay arbitration. Oriental S.A. argued that if the arbitration clause was enforceable, the arbitration clause was between Oriental U.K. and Rosseel only. Rosseel argued Oriental S.A. was bound to the arbitration agreement because Oriental U.K. is an alter ego of Oriental S.A.

Rule of Law

Issue

Holding and Reasoning (Leisure, J.)

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