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The parties in this case are parties to
international maritime contracts that contain arbitration clauses. The contracts
are silent as to whether arbitration is permissible on behalf of a class of
contracting parties. A panel of arbitrators, tasked with deciding whether that
silence permitted or precluded class arbitration, received evidence and briefing
from both sides. The arbitrators issued an award deciding that the contracts
permit class arbitration.
Stolt-Nielsen petitioned the United States District Court
to vacate the award. That court did vacate the award on the ground that the
award was made in manifest disregard of the law.
The 2nd Circuit reversed. The 2nd Circuit applied the rule
that courts vacate arbitration awards in the rare instances in which "the
arbitrator knew of the relevant [legal] principle, appreciated that this
principle controlled the outcome of the disputed issue, and nonetheless
willfully flouted the governing law by refusing to apply it." Using this
principle, the court found that the arbitration panel did not manifestly
disregard a rule of federal maritime law, and did not manifestly disregard New
York State law.
Case below: Stolt-Nielsen S.A.,
et al. v. AnimalFeeds International Corp. (2nd Cir 11/04/2008)
Official docket sheet
Certiorari granted June 15, 2009.
Oral argument:
December 9, 2009.
Question presented:
In Green Tree Financial Corp. v. Bazzle, 539 U.S. 444 (2003),
this Court granted certiorari to decide a question that had divided the lower
courts: whether the Federal Arbitration Act permits the imposition of class
arbitration when the parties’ agreement is silent regarding class arbitration.
The Court was unable to reach that question, however, because a plurality concluded
that the arbitrator first needed to address whether the agreement
there was in fact "silent." That threshold obstacle is not present in
this case, and the question presented here--which continues to divide the lower
courts--is the same one presented in Bazzle:
Whether imposing class arbitration on parties whose arbitration
clauses are silent on that issue is consistent with the Federal Arbitration Act,
9 U.S.C. §§ 1 et seq.
Certiorari Documents:
Briefs on the merits:
- Brief
for Petitioner Stolt-Nielsen S.A., Stolt-Nielsen Transportation Group
LTD., Odfjell ASA, Odfjell Seachem AS, Odfjell USA, Inc., Jo Tankers B.V.,
Jo Tankers, Inc., and Tokyo Marine Co., LTD
- Brief
for Respondent Animalfeeds International Corp.
- Reply
Brief for Petitioner Stolt-Nielsen S.A., Stolt-Nielsen Transportation
Group LTD., Odfjell ASA, Odfjell Seachem AS, Odfjell USA, Inc., Jo
Tankers B.V., Jo Tankers, Inc., and Tokyo Marine Co., LTD.
- Brief
for the Pacific Legal Foundation in Support of Petitioner
- Brief
for DRI- The Voice of the Defense Bar in Support of Petitioner
- Brief
for CTIA—The Wireless Association® in Support of Petitioner
- Brief
for Chamber of Commerce of the United States of America in Support of
Petitioner
- Brief
for Association of Ship Brokers And Agents, BIMCO, Bergen Shipowners
Association, Chamber of Shipping of America, International Association
of Independent Tanker Owners, Japan Shipping Exchange, Inc., Norwegian
Shipowners Association, Society of Maritime Arbitrators, Inc., and the
Teekay Corporation in Support of Petitioner
- Brief
for the American Arbitration Association in Support of Neither Party
- Addendum
to Brief for the American Arbitration Association in Support of Neither
Party
- Brief
for Dub Herring Ford Lincoln-Mercury, Inc., in Support of Respondent
- Brief
for The American Antitrust Institute, the American Independent Business
Alliance, and the National Community Pharmacists Association in Support
of Respondent
- Brief
for Public Citizen, Inc., in Support of Respondent
- Brief
for Public Justice and Public Good in Support of Respondent
- Brief
for the American Association for Justice and AARP in Support of
Respondent
- Brief
for the Lawyers’ Committee for Civil Rights Under Law, Alliance for
Justice, Asian American Justice Center, National Employment Lawyers
Association, National Partnership for Women & Families, and National
Women’s Law Center in Support of Respondent
Counsel:
For Respondents AnimalFeeds International Corp.: Cornelia
T.L. Pillard;
Georgetown University Law Center; 600 New Jersey Ave., NW; Washington, DC 20001;
pillardn@law.georgetown.edu;
(202) 662-9391.
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