United Kingdom of Great Britain & Northern Ireland v. Boeing Co.

998 F.2d 68 (1993)

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United Kingdom of Great Britain & Northern Ireland v. Boeing Co.

United States Court of Appeals for the Second Circuit
998 F.2d 68 (1993)

Facts

In 1981, a dispute arose between the government of the United Kingdom (United Kingdom) (plaintiff) and two corporations, Boeing and Textron (defendants). In January 1989, a United Kingdom military helicopter was damaged during Boeing’s testing of a new system designed by Textron. The United Kingdom had separate contracts with Boeing and Textron for certain services. The contracts both contained arbitration clauses that provided the parties would refer all disputes to arbitration under the American Arbitration Association (AAA) Rules in New York City. The United Kingdom filed a demand for arbitration against Boeing and Textron with the AAA after the January 1989 ground testing incident. Both before and after filing its demands for arbitration, the United Kingdom requested that Boeing and Textron consent to consolidation of the arbitration proceedings. Boeing refused, and the AAA informed the United Kingdom that it would not order consolidation of arbitration proceedings without the consent of all parties. The United Kingdom then filed a petition to compel consolidated arbitration in the district court. Citing Compania Espanola de Petroleos, S.A. v. Nereus Shipping, S.A., the district court held it could compel consolidation of separate arbitration proceedings when the proceedings involve the same questions of fact and law, even without the parties’ consent. Boeing appealed to the Second Circuit.

Rule of Law

Issue

Holding and Reasoning (Meskill, C.J.)

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