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The Blog of International Judicial Assistance | By Ted Folkman of Folkman LLC

Posts tagged “FAA

Case of the Day: McDonnel Group v. Great Lakes Insurance

Posted on May 15, 2019

The case of the day is McDonnel Group, LLC v. Great Lakes Insurance SE, UK Branch (5th Cir. 2019). McDonnel purchased a builder’s risk policy from a group of insurers. When the insurers denied a claim, McDonnel sued. The insurers argued that the case had to be arbitrated, because the insurance policy contained an agreement to arbitrate. But the policy also had a provision stating: “In the event any terms of this Policy are in conflict with the statutes of the jurisdiction where the Insured Property is located, such terms are amended to conform to such statutes.” A Louisiana statute, § 22:868, forbade agreements to arbitrate in certain insurance contracts covering property in the state. Prior cases had already held that the New York…

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Case of the Day: Outokumpu Stainless USA v. Converteam

Posted on September 25, 2018

The case of the day is Outokumpu Stainless USA, LLC v. Converteam SAS (11th Cir. 2018). Outokumpu operated a steel plant in Alabama. It contracted with Fives for the purchase of three cold rolling mills for use in the plant. The contract had an agreement to arbitrate calling for arbitration in Germany under the ICC Rules. GE Energy Conversion France SAS was identified in the contract as a potential subcontractor; its job, in the event, was to provide the motors for the mills. Although the contract defined the buyer and the seller as the “Parties,” it also said that the word “seller” includes sub-contractors, unless expressly provided. GE and Fives were also party to an “Agreement for Consortial Cooperation,” unknown to Outokumpu at the…

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Case of the Day: Outokumpu Stainless v. Converteam

Posted on September 5, 2018

The case of the day is Outokumpu Stainless USA, LLC v. Converteam SAS (11th Cir. 2018). Outokumpu had a steel factory in Alabama. Its predecessor in interest had a contract with a firm called Fives to buy three cold rolling mills for use in the factory. The contract had an agreement to arbitrate requiring arbitration in Düsseldorf under the ICC Rules. Fives subcontracted with GE Energy Conversion France SAS to provide motors for use in the mills. The motors failed, and Outokumpu sued GE in the Alabama state court. GE removed the case to the District Court and moved to dismiss and compel arbitration. The court denied Outokumpu’s motion to remand and granted GE’s motion to compel, and Outokumpu appealed.

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