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UNITED STATES 1042
United States District Court, Northern District of California, San Jose Division, 4 January 2022, Case No. 20-CV-08033-LHK
(Youlin Wang v. Richard Kahn et al.)
UNITED STATES 1042
The Court held that it had jurisdiction over a petition to enjoin arbitration under the New York Convention. Although the Convention did not explicitly authorize a court to enjoin a pending arbitration, and the Ninth Circuit had not yet determined this issue, the Court agreed with other district courts that the plain language of Sect. 203 of the Federal Arbitration Act (FAA) vests district courts with jurisdiction over an action or proceeding falling under the New York Convention, and Sect. 202 in turn provides the definition of an arbitration agreement or arbitral award that falls under the Convention. The arbitration agreement in the present case fell under the Convention – since it arose from a legal relationship which was commercial in nature and not entirely domestic in scope – and consequently the Court had jurisdiction.
The court discusses the meaning and effect of the referral of the resolution of disputes to arbitration, including: who can ask for referral and when, whether a party has waived its right to request arbitration, the defense that there was no contract at all; whether there was a condition precedent to the commencement of arbitration (e.g. mediation), stay of proceedings v. compelling arbitration, and national procedural specificities such as remand and removal (US), effect of class action. etc.