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Valero Marketing & Supply Co. v. Greeni Oy & Greeni Trading Oy

United States District Court for the District of New Jersey
373 F.Supp. 2d 475 (2005)


Facts

Valero Marketing & Supply Company (Valero) (plaintiff) mixed reformulated gasoline using components purchased from third-party suppliers. Valero was incorporated in Delaware with its principal place of business in San Antonio, Texas. Through a broker, Valero entered into an oral agreement with Greeni Trading Oy (Greeni) (defendant) to have 25,000 metric tons of a chemical called naphtha delivered to Valero’s operation in New York Harbor. Greeni was incorporated and had its principal place of business in Finland. The broker sent a written confirmation to both Valero and Greeni. The document made the shipping vessel subject to Valero’s approval and stated that English law governed the parties’ contract. Valero sent Greeni a written confirmation that incorporated very similar terms but designated New York law as the contract’s governing law. Greeni chose a vessel named the Bear G to transport the naphtha from Germany, where Greeni was storing it, to New York Harbor. Valero rejected Greeni’s choice of vessel. Greeni nonetheless shipped the naphtha on the Bear G. Because of a storm in the Atlantic and delays related to the terrorist attacks of September 11, 2001, the Bear G. arrived in New York Harbor late. Valero refused delivery and sued Greeni for damages. Valero moved for partial summary judgment, arguing that New York law governed the suit.

Rule of Law

Issue

Holding and Reasoning (Debevoise, J.)

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