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- UNITED STATES 9 February 2023 Coastal Cargo
UNITED STATES 9 February 2023 Coastal Cargo
United States District Court, Eastern District of Louisiana, 9 February 2023, CIVIL ACTION NO. 22-4622 SECTION “L”, MAG “4”
(Coastal Cargo Company, LLC ... Read more
United States District Court, Eastern District of Louisiana, 9 February 2023, CIVIL ACTION NO. 22-4622 SECTION “L”, MAG “4”
(Coastal Cargo Company, LLC v. Tenaris Global Services (Canada) Inc.)
UNITED STATES 9 February 2023 Coastal Cargo
The District Court denied the motion to compel arbitration of the dispute concerning a framework agreement between the parties, holding that one of the four jurisdictional requirements for the application of the New York Convention, which requires the courts to compel arbitration of a dispute covered by an arbitration agreement, was not met – namely, there was no arbitration agreement in writing between the parties. Coastal Cargo had undisputedly not signed the framework agreement. Tenaris argued, however, that this was immaterial as Coastal Cargo had received the agreement and had performed thereunder. The Court disagreed, holding that, although Louisiana law recognizes methods of contract formation which do not necessarily require both parties' signatures, in this case Tenaris failed to carry its burden to prove that Coastal Cargo received the framework agreement containing the arbitration clause.
The court discusses the second alternative requirement of Art. II(2) that the arbitration agreement is “contained in an exchange of letters or telegrams”.