US 1005

United States Court of Appeals, Fourth Circuit, 
8 June 2020
(Denver Global Products, Inc. v. Roger Leon et al.)

08 - 06 - 2020

US 1005

Yearbook Yearbook Commercial Arbitration, S. W. Schill (ed.), Vol. XLV (2020)
Jurisdiction United States
Original full text Full text decision US 1005
Summary

The Court of Appeals affirmed the decision of the district court (US no. 965), which had granted a motion to compel arbitration of claims against the first defendant/appellant and the motion of the appellees to confirm CIETAC awards. As to the motion to compel arbitration, the Court held that deference was owed to the factual finding of the lower court that the first defendant’s contention that he had not agreed to arbitration was disproved by the evidence; in any case, the Court added, the first defendant should have protected himself when signing the agreements containing the arbitration clauses, and could not invoke the fact that had not retained Chinese counsel or an impartial interpreter. As to the motion to confirm the awards, the first defendant could not argue that confirmation should be denied because the appellees commenced arbitration in China while their motion to compel arbitration was pending in the US courts. The Court explained that the FAA did not require that a party must move in court to compel arbitration before initiating arbitration, or that a court order on a motion to compel arbitration was a prerequisite for arbitration. The defense that the first defendant had been unable to present his case in the arbitration because of his poor health and limited financial resources was disproved by the record. The argument that confirmation would be against public policy was not explained, and in any case could not be heard because it was raised for the first time on appeal.

Related topics
207

The court discusses what more recent means of communication are also covered by the “exchange of letters or telegrams” alternative: telefax, email, e-commerce, etc.

Means of communication for achieving the exchange in writing
215 Agreement providing for arbitration within forum's State
218

The court discusses whether referral of the resolution of disputes to arbitration is mandatory under the Convention and whether mandatory referral is an internationally uniform rule which supersedes municipal law.

Referral is mandatory
220

The court discusses how to interpret the Convention’s requirement that the agreement is not null and void etc., as well as specific cases of invalidity: e.g., lack of consent (misrepresentation, duress, or fraud), vague wording of the arbitral clause; other terms of the contract contradict the intention to arbitrate, etc.

"Null and void", etc.
301

The court discusses the principle that the procedure for the enforcement of awards under the Convention is governed by the lex fori, as well as procedural issues (such as the competent enforcement court) not falling under the specific cases of ¶¶ 302-307.

Procedure for enforcement in general
518

Public policy: The court discusses the meaning of (international as compared to domestic) public policy, generally defined as the basic notions of morality and justice of the enforcement State.

Paragraph 2 - Distinction domestic-international public policy
US 1005