The Southern District of Texas has ordered arbitration with a nonsignatory in a maritime contract dispute. In Kingsbury Navigation Ltd. v. Koch Supply & Trading, LP, No. 4:12-CV-1851 (S.D. Texas, August 24, 2013), Kingsbury Navigation, Ltd. (“Kingsbury”) entered into an agreement with Koch Shipping, Inc. (“Koch Shipping”) to utilize Kingsbury’s tanker, the Seadancer, to transport fuel. The agreement between the parties contained an arbitration clause. As is normal practice in the industry, Kingsbury also entered into a contract with an unrelated party for the use of the Seadancer following Koch Shipping’s discharge of the fuel. After Koch Shipping allegedly failed to discharge the cargo within a reasonable time period, the other contract was cancelled.
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