Tag Archives: FAA

Case of the Day: Albaniabeg Ambient v. Enel

The case of the day is Albaniabeg Ambient Sh.p.k. v. Enel S.p.A. (S.D.N.Y. 2016). BEG S.p.A., an Italian company, contracted with the government of Albania to build and operate a hydroelectric plant. BEG also had a contract with Enel S.p.A., another Italian firm, to study the feasibility of the project. Later, BEG had a similar contract with Enelpower S.p.A., an Enel subsidiary. The Enelpower contract had an agreement to arbitrate.

A dispute arose. BEG commenced an arbitration against Enelpower for breach of contract. The tribunal, seated in Rome, found that Enelpower was not liable to BEG. The Italian courts refused to vacate the award despite a claim that one of the arbitrators had a conflict of interest.

Later, Albaniabeg, a subsidiary of BEG, brought an action against Enel and Enelpower in the Albanian court. The claims were tort claims arising out of the hydroelectric project. The Albanian court entered a judgment for more than € 25 million against Enel and Enelpower, which was affirmed on appeal. The European Court of Human Rights rejected Enel and Enelpower’s challenge to the judgment.

Albaniabeg brought an action in the New York Supreme Court for recognition of the Albanian judgment. Continue reading Case of the Day: Albaniabeg Ambient v. Enel

Case of the Day: Clientron Corp. v. Devon IT, Inc.

The case of the day, Clientron Corp. v. Devon IT, Inc. (E.D. Pa. 2014), seems flagrantly wrong. The facts were simple enough. Clientron was a Taiwan corporation. It had a contract with Devon, a Pennsylvania corporation, for the manufacture and delivery of computer components. The contract had an arbitration agreement. A dispute arose, and Clientron commenced an arbitration before the Chinese Arbitration Association in Taiwan. Although Devon argued that the dispute was not arbitrable, the tribunal determined that it had jurisdiction and entered an award for $6.5 million in favor of Clientron. Clientron obtained a judgment in Taiwan enforcing the arbitral award. There had been no decision in a revocation proceeding Devon had brought in Taiwan.
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TBS Middle East Carriers v. United Quarries

The case of the day is TBS Middle East Carriers v. United Quarries (S.D.N.Y. 2014). United Quarries charted vessels owned by TBS to carry crushed gabbro aggregate from Fujairah, in the UAE, to Mesaieed, Qatar. Under their contract, 134 shipments were completed. TBS charged United Quarries approximately $30.2 million for freight and $18.2 million for demurrage. There was no dispute about those charges. There was, however, a dispute about much smaller costs: $122,753 for “account reconciliation,” $25,696.78 for “reimbursement of shifting expenses,” $138,162.15 for additional war risk premiums, and $1.36 million for bunker escalations. United Quarries counterclaimed for $605,835.57, or 1.25% on the gross freight and demurrage earned by TBS.
Continue reading TBS Middle East Carriers v. United Quarries