Does an arbitrator exceed her powers when, as a remedy for fraud in the inducement of a limited-duration intellectual property license, she modifies the contract “as a matter of law” to provide the licensor with a perpetual royalty-free license? The U.S. Fifth Circuit Court of Appeals, reversing a Texas district court’s vacatur order, held that the arbitrator’s award should stand. (Timegate Studios, Inc. v. Southpeak Interactive, L.L.C., 2013 WL 1437710 (5th Cir. April 9, 2013)). Even though the question presented was whether the arbitrator could rewrite the contract as a fraud remedy, the Court held that the relevant legal test…
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Recent Posts
Arbitral Power to Rewrite the Contract: Has the Fifth Circuit Overextended Judicial Deference?
Forum Non After Figueiredo: A Pragmatic Approach May Avoid the Difficulty
Evidently undaunted by the Second Circuit’s dismissal of an award confirmation case on grounds of forum non conveniens (Figueiredo Ferraz E Engharia de Projeta Ltda. v. Republic of Peru, 665 F.3d 384 (2d Cir. 2011)) — or at least convinced of the Figueiredo panel majority’s idiosyncratic take on the “public interest” factor in forum non analysis — a federal district judge in New York recently denied a forum non conveniens motion to dismiss a confirmation action between Antiguan parties on both sides, arising from an arbitration that took place in Puerto Rico. (Leeward Constr. Co. v. American Univ. of Antigua, …
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Can “Actual Bias” Approach to “Evident Partiality” Discourage Post-Award Litigation?
It has been nearly 45 years since the Supreme Court of the United States decided the Commonwealth Coatings case (Commonwealth Coatings Corp. v. Continental Casualty Co., 393 U.S. 145 (1968)) and addressed for the only time in its history the meaning of the term “evident partiality,” which appears in Chapter One of the FAA as a ground for setting aside an Award. No single opinion or rationale commanded a majority of the Justices in that case, and the legacy of the case has been generally associated with the concurring opinion of Justice White, who was able to support the affirmance…
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Currency Conversion and Interest: Some Common Sense Award Enforcement Rules Articulated
Some rules and principles relating to enforcement of international arbitration awards are essentially matters of common sense. Foremost among them are rules relating to the currency of judgments enforcing awards, and post-award interest. But as they are not often the subjects of reasoned judicial decisions, it is useful to take note when well-reasoned decisions come along. Today’s text is from a federal district court in Washington D.C., which addressed currency conversion and interest issues associated with a judgment enforcing a large arbitration award, made in London and rendered in British pounds and Nigerian niara, against the Federal Government of Nigeria….
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Returning Unscathed From the Battlefield of Provisional Measures
This commentator apologizes for his prolonged absence, explained largely in two words: provisional relief. In the representation of the Claimant in an ICDR arbitration seated in New York, there has been occasion to apply successfully for (i) judicial Mareva freezing orders in aid of arbitration in three foreign jurisdictions, (ii) an ICDR Emergency Arbitrator’s Partial Final Award directing access to the property in dispute; (iii) an arbitral Mareva freezing order and order for security for the amount in dispute, given as an Interim Award; (iv) judgments in the U.S. District Court and in the three foreign Mareva jurisdictions, confirming the Interim Award under the New York Convention; and…
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Is There Pendent Jurisdiction in New York Convention Cases?
In a recent case, the removal of an action from state to federal court based on Chapter Two of the FAA (Section 205) and the New York Convention raised a question that puzzles this writer but evidently did not cause any hesitation for the US Second Circuit Court of Appeals. The question: does such removal confer subject matter jurisdiction on the federal district courts to decide issues having nothing to do with an arbitration agreement or award governed by the New York Convention. Per the Second Circuit, at least by implication, the answer is yes. (Bakoss v. Certain Underwriters at…
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