Filanto v. Chilewich International Corp- 5 PDF

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Commercial Arbitration
Lecture Notes from Spring 2021
Casebook Problems from Class Lecture...

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Commercial Arbitration Lecture Notes from Spring 2021 Chapter Five

Assent As with domestic arbitration, parties cannot be compelled to arbitrate an international dispute unless they have agreed to do so.

Filanto v. Chilewich International Corp: Plaintiff Italian corporation entered into an agreement with defendant New York corporation where it would provide boots to satisfy an agreement between defendant and a Russian company. After a disagreement between the parties, plaintiff brought this action seeking to enjoin the arbitration required by the contract between defendant and the Russian company (the Russian contract) or to order arbitration in New York. Defendant moved the court to stay the present action pending arbitration in Moscow. The court issued a final judgment, including a mandatory injunction requiring the parties to arbitrate in Moscow as provided in the arbitration clause. The court found that there were a series of exchanges between the parties concerning the incorporation of the Russian contract into their agreement. But the court determined that a memorandum agreement signed by the parties that specifically incorporated by reference the arbitration provision in the Russian contract was the binding written contract. The court held that plaintiff should be bound because it attempted to utilize to its benefit another provision of the Russian contract and because it signed the memorandum. Problem 5.6: the seller put a clause providing that all disputes are to be resolved by arbitration which doesn’t include in buyer’s purchase order. Whether there’s a contract? Who should decide? (a) American Buyer fax to calling of the deal after Seller got the purchase order.  No contract was formed under UCC 2-207 Both from US, others same as (a)  No arbitration agreement ---

Same as (a), but the buyer didn’t change his mind. The contract was performed.  UCC 2-207(c), Performance to form the contract, it needs to comply with the writing, the arbitration clause is not formed. The purchase order contained that the arbitration to be administered under ICC.  ICC construed---let the court to decide instead of the arbitrator decide...