Robobar Limited (UK) v. Finncold SAS (Italy)

20 Y.B. Comm. Arb. 739 (1995)

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Robobar Limited (UK) v. Finncold SAS (Italy)

Italy Supreme Court
20 Y.B. Comm. Arb. 739 (1995)

Facts

Robobar Limited (UK) (Robobar) (defendant) produced refrigerators for hotels. Finncold SAS (Italy) (Finncold) (plaintiff) provided refrigerating units to Robobar from 1989 to 1991. The purchase confirmations that Robobar sent to Finncold included an arbitration clause, which stated that disputes arising from the orders were to be exclusively submitted to arbitration. Finncold never responded or consented to arbitration by letter or telegram. In 1991 Robobar stopped payments to Finncold on the ground that the delivered products were faulty or poorly made, causing Robobar to receive complaints from customers. Robobar employees who responded to customer complaints about the refrigerators specifically referred to the defective Finncold units. Finncold filed a lawsuit for withheld payments and loss of reputation against Robobar in the Court of First Instance in Casale Monferrato, Italy. Robobar filed a request with the Italy Supreme Court for a preliminary ruling that Italian courts lacked jurisdiction over the case because the arbitration clause contained in the purchase confirmations was valid.

Rule of Law

Issue

Holding and Reasoning ()

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