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- Title
INTERNATIONAL--MARITIME--FEDERAL ARBITRATION ACT--DENIAL OF STAY--BROAD ARBITRATION CLAUSE--SCOPE OF ARBITRATION CLAUSE.
- Abstract
This article presents information about a court case wherein the court held that the trial court erred in denying a stay of a court action under section 3 of the U.S. Federal Arbitration Act (FAA), and precluding the arbitrators from determining whether the parties' dispute fell within the scope of their arbitration agreement. Coastal was the owner of a barge carrying cargo for the Republic of Tunisia. The barge sank while under tow by a boat chartered by Coastal from Hornbeck Offshore Services Inc. The Coastal/Hornbeck towage agreement contained an arbitration clause providing that any dispute arising between them be referred for arbitration. Hornbeck filed an action in federal court under the Limitation of Liability Act. Tunisia filed a claim for loss of the cargo while Coastal filed an action for indemnity and/or contribution under the towage agreement in case Tunisia should obtain judgment against it. Both parties were at fault. Per section 3 of the FAA, Coastal moved to stay the limitation proceeding pending arbitration of the contribution/indemnity claim between it and Hornbeck, but the trial court denied the motion. Coastal appealed. The appellate court noted at the outset that it had appellate jurisdiction under section 16(a)(1)(A) of the FAA and reviewed the trial court's order.
- Subjects
UNITED States; COMMERCIAL arbitration agreements; ARBITRATION &; award; HORNBECK Offshore Services Inc.; LEGAL judgments; APPELLATE courts
- Publication
Arbitration Journal, 1993, Vol 48, Issue 2, p91
- ISSN
0003-7893
- Publication type
Article