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,...
The United States Fifth Circuit Court of Appeals has affirmed an arbitral award based upon breach of an unsigned contract. In Tricon Energy Limited v. Vinmar International, Ltd., No. 12-20100 (5th Cir. May 3, 2013), Vinmar agreed to purchase an industrial petrochemical from Tricon through the services of a broker. The parties entered into a binding agreement through the broker using three memoranda to confirm the terms of the deal. The following day, a representative for Tricon sent a Vinmar...