Internaves de Mexico s.a. de C.V. v. Andromeda Steamship Corporation et al

Filing 35

ORDER AND OPINION Granting in part and Denying in part Defendants' 20 Motion to Compel Arbitration. The Parties shall, by 4/5/2017, advise the Court whether they have agreed to an arbitration panel and forum. Signed by Judge Donald M. Middlebrooks on 3/28/2017. (gp)

UNI
TED STATES DI
STRI COURT
CT
SOUTHERN DI
STRI O F FLO RI
CT
DA
CASE NO.1 81 9- V- I
6- 71 CI M DDLEBRO OK S
W TERNAVES DE M EXI sa.deC. ,
CO .
V.
Pli if
a ntf,

ANDROM EDA STEAM SHI
P
CORPORATI N ,AM ERI
O
CAN
N A V I TI N ,I C . PEG A SU S LI ES,
GA O
N ,
N
LTD . A .PANAM A , J ES
S. ,
and AM
KARATHANOS,
Def nda s
e nt .
/

ORDER AND O PI ON G RANTI I PART AND DENYI I PART
NI
NG N
NG N
DEFENDANTS'M OTI TO CO M PEL ARBI
ON
TM TI
ON
THI CAUSE c
S
omes bef e t Cour upon Def nt Andr
or he
t
enda s
omeda Stams p
e hi
Cor a in, Am e i n Na ga i l , Pega us Li , Lt S. , Pa ma, a J mes
porto
rca
vi ton, nc.
s
nes d. A. na
nd a

Kaah no '(ol ci l,' fn a t' M oi n t Co e Ar irto o ,i te Ale tv ,
rta s c l t y ' e d n s' to o mp l btain r n h tmaie
e ve De
)

M oi n t Dimis (M oi ' ,fld o J n ay 1 2 7 ( 2 ) Plitf l tr a sd
to o s s $ ton' ie n a u r 3, 01 . DE 0 . anif n en ve e
t
)
Me c sa d C. (û tr a e ' fld aRepo s i o po iin o F b u r 3 2 7 ( 2 )
xio .. e V. sn en v s' ie
l
)
s n e n p sto n e r a y , 01 DE 8 ,
t whc Dee d nsrpl d o Fe r a y 1 ,2 7 ( 3 ) F rt er a o ssae b lw, h
o ih f n a t e i n b u r 0 01 DE 0 . o h e s n ttd eo t e
e
M o i n i gr nt d i pa tand de ed i pa tl
to s a e n r
ni n r .
BACKGRO UND

l er vesfld aCompli a i tDee nt on Oct r 1 2016( 1,heei fe
nt na ie
ant gans fnda s
obe 2,
DE
r na tr
S
i
compli 'ori mp1') alegi brac ofcontac,c ri a fa (d.a !! 9ant' (
Co . , l ng e h
'
r t onveson, nd rud i t
36)

ec
e nt '
1 Bec us l a e t t Pa te mus ar tae t r diput I do not r a h Def nda s
a e gr e hat he ris
t bir t hei s e,
a gume t f dim isng t Com pl nt
r
n s or s s i he
ai .

se n fom ac nr c t ta p r a ee tia ta f r rfo Brzl oMe io(#. t 6 .
tmmig r
o ta t o rns o t n lcrc lrnso me r m a it xc / a ! )
De e nt c e t t t r a ins p bewe t Pa tes i gover d by a c r t or
f nda s ont nd ha he elto hi t en he ri s
ne
ontac ,

S re Pa t ' t
i tr ry,' hatpr des f a bir ton of al dipu e i London, Englnd a unde
cha
ovi
or r ta i
1 s ts n
a
nd
r

En ls lw. ( 20 a 2 . Plitf dip ts wh r a d u d rwh tlw t e Ch re Pat
gih a DE
t ) anif s ue ee n n e a a h a tr ry
pr de f a bir ton t t ke plce I a ton,Pli ifa s a guest tt a bir ton ca e
ovi s or r ta i o a
a . n ddii
a ntf lo r
ha he r ta i lus

i teCh re Pa t wa id c db fa da te eo eiv ld ( 2 a 3 . On Fe u r 2
n h a tr ry s n u e y r u nd h rf r n ai . DE 8 t )
br ay 4,
201 t Cou tis d a or r sa ng pr ee ngspe ng r s uton oft i tntM oton.
7, he
r s ue n de t yi
oc di
ndi e ol i
he nsa
i

( 33 .
DE )
LEGAL STANDARD

Fe a l sr y f s a e
der l aw tongl avor gr ement t a bir e pa tculry i i e atonal
s o r tat, ri a l n ntm i

c
ommeca ta a tons Se Sc r v Al ro- v r Co. 41 U, 50 51 20 ( 97 .
ril rns ci . e he k . be t cule
, 7 S. 6, 9- 1 4)
I e t El nt Cicui hashel t tt r i a pl pr e
nde d, he eve h r t
d ha he e s m e ec dentin f voroffe y negotatd
k a
i
r el ie
c r cualchoie of lw a f um s e ton pr sons ...wih s i lf c i t fed of
onta t
c
a nd or
elc i
ovii
t pec a or e n he i l

i e tona c
ntmai l ommece. Li v NCL (
r ' ndo .
'
Bahamas,Lt .65 F. 1 1 ( 1hCi.2011,
) d 2 3d 257, 275 1 t r
)
W he e o cng a a bir i pr son,a c tmay diec t c e t a bir ton a a tm e
n nf r i n r taton ovii
our
r t he as o r ta i t ny i

beo etil SeeT
fr ra.
homasv.Car v Cor ,5 F. 111 111 ( 1hCi.
nial p. 73 3d 3, 6 1 t r 2009)
.

Itr ain labtain a re n sae s b e tt t eUn tdNainsCo v n in o t e
n en to a r i to g e me t r u j c o h ie to
r
n e to n h
Re og iin a d Enfr e n o F r in Ar i a Awads(h d n e to ' . Bo ht Untd
c nto n
o c me t f o eg bt l r tt t v n in' t he ie
r
co
)

Sttsa dEnga dh vea o tdt eCo v n in, & Da i 1 tl l c v T Re b i o e n
ae n
ln a d p e h n e to S
vs n ' n . . he pu lc fY me ,
,
218 F. 1
3d 292,1 ( 1h Ci.2000) he Unie Stts t ough is i porton i o t
301 1 t r
,t
td ae hr
t ncor ai nt he
Fe a Ar tai Ac (i ',9 U. C.jj 201208. Thoma 573 F. a 111 Doe v
derl birton t $
FAA')
S.
s,
3d t 6;
.
Prnc s Cr s Li s Lt , 657 F.d 1 4, 1 1 n. ( 1h Ci.2011, A c t ha ng
i e s uie ne , d
3 20 2 3, 9 1 t r
)
our vi

j idito unde t Conve i S y diec t tabirton be hed i a c da e wih t
urs cin
r he
nton i
ma r t ha r tai
l n c or nc t he

a e m e a a pl c t r n pr de f ,whet rt tplc i wihi orwihoutt Unie
gr e nt t ny a e he ei ovi d or
he ha a e s t n
t
he t d

Stt . 9U. C.j206.
acs'
' S.
I lghtoft polcisf vorng a bir i n,c t s d conduc û ve y lmie i r '
ni
he i e a i r tato ours houl
t $ r i t d nquiy'
a
i de i ng whe he t c pe abir ton pur ua t t Conve i Bautsa v St Cr s ,
n c di
t r o om l r ta i
s nt o he
nton.
it . ar uies

396 F. 1289,1 ( 1h Ci.2005)( ttons omitd) To co
3d
294 1 t r
ciai
te .
mpelabir ton unde t
r tai
r he

Co v ni n f u j rs it n lp ee ii s mu tb s tsi d 1 te e i a a re n i
n e to , o r u idci a rrqust
o
e
s e aite ;( ) h r s n g e me t n
wrtng t a birt t diput ( t agreme pr de f a birton i t trior ofa
ii o r tae he s e; 2) he e nt ovi s or r tai n he ert y
Conve i sgnaor ( t ag e men ars soutofac
nton i t y; 3) he r e t ie
omme ca lgalr ai hi a (
r il e eltons p; nd 4)
t r i a l a tone pa t t t a e ntwho i nota Am e i n ctz Se i a 1
he e s t e s
ry o he gr eme
s
n
rca iien. e d. t 294,n.
7.

A c u tç to d rabi ai u ls ( )t ef u j rs ito lp ee ust saen tme o ( )
or t
mus r e r t t ne s 1 h o r u idc ina rr q iie r o t r 2
r on
o oft Conve to safimai dee esa i , l a 1 95 (iai omitd) The
ne he
nin' fr tve fns pples' d t 294- cttons te .
'
Conve i n r c z s t f l ng a fr a i de e e t a a bir ton a ee
nto e ogni e he olowi fim tve f ns s o n r ta i gr ment t tt
; ha he
a bir ton a e
r tai gr emen i S la voi nope a i or i a bl ofbe ng peronne ' fi
tsi
nul nd d,i r tve
nc pa e
i
f
d.' ndo,

652F. a 1 (ii New Yor Conve i a .14
3d t 276 ctng
k
nton, r 13:,
Fi ly,be us t Unie Stt a ed t Conven i n t r
na l
ca e he
t d a es dopt he
to h ough t FAA,f er l
he
ed a

c ut a py S
o rs p l t
FAA p icp e (o g ie t e a l i' o t e p ris i tn t a btae wh n
rn ils t l ud h nayss' f h a t ' ne t o r i t e
e
r
e uai motons t c
val tng
i
o ompe a bir ton pur uan t i er tonal ar tato a ee nt.
l r ta i
s t o nt na i
bir i n gr me s
Prnce s Cr s 657 F. at1 3,n.
i s uie,
3d 21 9.
DI
SCUSSI
ON

Th r i n d s u ea n tePa t st a t ef u j rs ito lp ce uiie h v b e
ee s o ip t mo g h ri h t h o r u idcina rrq sts a e e n
e
m e . Fis ,D e e
t r t f ndant i
s nvoke t Cha t rPa t s a bir ton ag ee entand l e nave a is i
he
r e r y' r t a i
r m
nt r
s dm t n

isRepons bre t tt Cha trPa t conti a ar taton caus ( 28a 3 .Thus t r
t s e if ha he re ry ans n bir i l e. DE
t)
,hee

3

i a a e m e i wrtng t a bir t t diput .2 Secon d,alhoug t Pa tesdiagr e ast
s n gr e nt n ii o r ta e he s e
t h he ri s e
o
whe e t Cha trPa t calsf a bir ton t be hel t t ose i eoptons- Ne Yor or
r he
re ry l or r ta i o
d, he wo t nsbl i
w
k
London - a e bo h lca e wihi c re t ta e sgna orest t Conve i S & Davi
r t o t d t n ounti s ha r i t i o he
nton.
s

1 z 21 p. a 1 . r ast Compl ntis l alge ,t pr entdiput aiesOutofa
nt 8 - t 3013Thid, he
3d
ai tef le s he es
s e rs
c
omm e cill alr l i hi snc t unde l ng ta a i i ve l e na 'r t nton of
r a eg eatons p, i e he
ryi r ns cton nvol d nt r ves e e i

Dee d n s tes ip n a e t,o i ary U a ee tia ta fr rfo Brz l oM e c '
fn a t,h hp i g g n s t i rlj n lcrc l rnso me r m a i t xio.
c
'

( mp .a ! 6 . Fo rh a d fn ly tee ae s v rlPa t st t i a to wh te Co lit
Co l t ) u t n i al, h r r e ea ri o hs c in o h mp an
e
a lges a e not Amerca cii e
le
r
i n tz ns. The e i ude l e ave is f whi i a M exian
s ncl
nt m s tel,
ch s
c

c r o ain (d a ! 1,De e d n Pe a u Lie , Lt S. ,Pa a ,f eiv d t b ' a
o p rto i. t ) fn a t g s s n s d. A. n ma i le e o e'
b
Pa a na c r o ain (d a ! 4 ,a d p sb y a s And o da Sta h p Co p rto ,
n ma in o p rto i. t ) n osil lo
r me
e ms i r o ain
desrbe asacor ai ' ga ze unde t lwsofasat orcountyot rt n Fl i '(d.
ci d
porton k ni d
or
r he a
te
r he ha orda' i

a !2 .
t )
Thehe tOft dia ee e i whe he t a bir ton caus i voi d by t def ns of
ar he s gr m nt s t r he r ta i l e s de
he e e
fa i t i uc m e . Aspr ousy dic s d, heConventon r c niest de e et ta
r ud n he nd e nt
evi l s us e t
i e og z he f ns ha n
a bir ton ag ee e i i la voi ' Li
r ta i
r m nt s i
nul nd d. ndo,652 F. a 1
'
3d t 276. The Elve h Cic tha
e nt r ui s

7I t r ves doe nota gue t tt muli iiy ofar taton f a e ' a a guii i t
n e na
s
r
ha he
tplct
bir i i us s' nd mbi tes n he
cl

Cha trPa t ( ei-' negaest e se eofadei tveabirtonca e o yt vai
re ry se n a) t he xitnc
h
fnii r tai lus , nl hat rous
c r c de e es- e e nalt t txt- r nde t caus i pe a i It ef e do notpur u
onta t f ns
xt r o he e
e r he l e no r tve. her or
se
t si r s s e.
hi nquiy ua pont
'lwila es beow why ne t roft s t l tonsi a l e. Asatl a tt c rshave
l ddr s l
ihe
he e wo oca i s vaiabl
e s wo ou t
hit d,t e i a t nson be wee uphol ng a r uie e t t t pari s mus s ciy a
n e her s e i
t n
di
eq r m nt ha he te
t pe f
l a i f abir ton i a Conve i sgna or sa e a t n or rng a bir i wihi t
oc ton or r ta i n
nton i t y tt nd he de i r taton t n ht
ditits own t rior bec us of unc rant i t f u l aton. Tha t nson has not
src '
e rt y
a e
e ti y n he or m oc i
t e i

pr enedt ec t fom purui t sveypah,Se Jai v.deMe e,51F. 686,691( h
ev t hes ours r
s ng hi r t
e n
r
3d
7t
Ci. 1
r 995) (c
a knowl ng lngua fom c e etbls ng rquie nt bu ne t ls
edgi a ge r
as s sa ihi e rme
t verhee s
fndi t tj4 grntd dititcour s power;ContolScr nig LLC v Te h.Applc i
i ng ha
a e src
t uch
)
r
ee n
. c
iaton
& Pr Co.HcM c- enamb687F. 1 1 ( d Ci,201 ( di t tkfr s lcto
od. ,
vit
3d 63, 70 3 r 2) hol ng ha io um ee in
pori ofa bir ton cl e'c d bevoi d by m u ualm it ke,e whie r m ani pori
ton r ta i aus ' oul
de
t
sa
ven
l e i ng tons

ofca e c d be u l basd on evi nce i conrc ofparis i e t abirt) Hee,
lus oul
phed e
de n ta t
te ' ntnt o r tae . r
t r i no doubtt tt con r c txtc t mplt sa bir ton i s
he e s
ha he ta t e on e a e r ta i n omel a i
oc ton.
4

c a iid t a ag e m e ca be f
lrfe hat n r e nt n
ound nul a voi ' y whe e i i obt i t ough t e
l nd d s
onl
r t s aned hr
hos

l td st ains s c a J a d mitk ,d r s ,a d wav r c n tttn sa d r b e c o i e iu to , u h s è u , sa e ue s n ie , o si ig tn a d r a h-f
mi
u
c r td e e t tc n beappled ne r ly on a itr tonals l ' I ( tng Bautsa,
ontac efns s ha a
i utal
n nenai
cae.' d. cii
it
396 F.3 a 1 - (mpha i a d) Thus afa defns i avalbl a las i t or 4
d t 30102) e
ss dde .
, rud e e s ia e, t e t n he y.
N o t l s ,bec us i
nehe e s
a e4
FAA prnci es'gui t Cour' a yss Prnc s Cr s ,657
i pl ' de he
ts nal i , i e s uie
F.d a 1 1 n, i i note
3 t 2 3, 9, t s
nough f I e na t aleg mer y t tsome t offau was
or nt r ves o l e
el ha
ype
r d

i ve i t e u l ng ta a ton, The Supr me Cour has r peaedl sr s d t t an
nvol d n h nderyi r ns c i
e
t
e t y tes e ha
a bir ton agr m e i s r bl fom t r t of a c r t Re - ce e , We ,I
r ta i
ee nt s eve a e r
he es
ontac . ntA- ntr
st nc.

Jac
kwn,561 U. 63,70 ( 0) Buc ye Che k Cas ng v Car gna,546 U. 440,445
S.
201 ; ke
c
hi . de
S.

( 0 6 ) i PantCop.v Fl o t Co ki Mf Co,3 8U. 3 5 4 3 0 ( 9 7 . Th ti
2 0 ) Prma i r . o d f n ln g. . 8 S. 9 , 0 -4 1 6 ) a s
b a e a ar tai c a e may,de ndi on is s ope,de e t t t ar taorigaeway'
ec us n bir ton l us
pe ng
t c
l ga e o he bir t t t
'

quesi ,'s h a whehert pate ha agred t abirt' i t frti tnc (. ,t
tons 'uc s t he ris ve e o r tae' n he is nsa e ie. he
queton oft bir lt ' orwheheranydef e t t c rctdeea isopeai RentAsi
i tabiiy'
ar
)
t
ens s o he onta f t t rton.
Ce er 5 U. a 68nt , 61 S. t 69. W he t a bir ton c a e e ompa s t is of c r t
n he r ta i l us nc
s es he s ue
ontac
de e e ,t S e r lt doc rne'i it t a f r c ts team e of fa cli s be
f ns s he ' ve abiiy
s
ti ' nsss hat ede al our' r t nt r ud am

bf rae . tlft cam i fa d i t ei u e n o te abtain ca s is l - a is e
iu c td i l he li s ru n h nd c me t f h r irto lu e tef n su
g
whih goes t t S ng'of t agr e e t a bir t - t f r oud n ay pr e d t
c
o he maki
he e m nt o r ta e he ede alc
n
oc e o

a j diaei.Bu t e( AA)d e n t r t h fd r lc u to c nsd rcamso fa di te
du ct t t h F
o s o pemi t e e e a o r t o ie li f r u n h
i ce e oft c r c ge r l ' Prma Pai , U . a 403ndu m nt he onta t ne aly. i
'
nt 388 S. t
04.

4Conve s l I er ves publc polcy a u ons i biiy def e t a bir ton f i eve
r ey, nt na '
i
i nd nc c ona lt
ens s o r ta i a l n
be o e r ac ng t f t The Conventon doe notr ogni a publc polc de e e bec us
f r e hi he acs.
i
s
ec ze
i
iy f ns
a e
t ac na i ope a e unde dif r nt sa ut y lws a pur ues dif r nt polcy co e ns'
i h ton
e
rts
r fe e tt or a
nd
s
fe e
i
nc r .
'
Li
ndo, 65 F. at 1
2 3d
278. Net r does i pe m i a u ons onabiiy de ens snce it i
ihe
t r t n nc ci
lt f e, i
' s
i
doubtult tt r e ssapr ie,uni s defnii oft u
f ha he e xit
ec s
veral i ton he nequa ba gani powe de e e
l r i ng
r f ns
t tmay be a i efe tvel ac os t r
ha
ppled f c i y r s he ange ofcounti t a e pa test t Conv i '
res hat r ri o he
enton.
'

1 a 1 (uotngBautsa,396F. a 1 .
d. t 277 q i
it
3d t 302)

The t e hol que ton,t n,i whati t s
hr s d
si he s
s he cope oft ar taton caus i tls c s ?
he bir i l e n li a e
Alhough t Pa te dipu e whih of t c e r clus de e nes t a bir ton'
t
he ri s s t
c
wo ont nde a es t nni
he r ta i s
l ton,e ch s e s i lyt s m et ng whe i comest t e entoft ar ta e is ,
ocai a ays s ental he a hi
n t
o he xt
he bir bl s ues

S cin 1 () sae ta d n ds t a iig o t( .hs Ch re 'J y s alb rfre t
e to 9a tts h t i y i e rsn u ) ti a tr r h l e eer d o
c
pu
.
/
abirton i London ..,. ( 18a 4)(mpha i adde , Si l l Se ton 1 b)povi s
r tai n
' DE - t e
'
ss d) miary, ci 9( r de
t ti houd an diput ars ou t s Chare 'fry,t materi diput s lbe r ere t
ha i l y s e ie t hi
s
tr ? ?' he t n s e hal
ef r d o
t e pe s atNe Yor
hr e r ons
w
k

(#. ( mp a i a d d . Th p e e t ds ue c n es o
/ ) e h ss d e ) e r s n ip t e tr n

De e nt'pe f ma e unde t c r tby al dl f ii t delvera ves elt ta por
f nda s ror nc
r he ontac
lege y alng o i
s o r ns t
a eecrc ta f mer û diput a ii pu s
n l ti al r nsor . i s e rsng r uantt o i a r l e t 'ac r c incl
A
o r n ny eatd o' onta t s udes
i
adiput ove t t r sorpe f manc 'oft conta .1 1 Unde wrt sAG v Trpl 1' nt1
s e r he e m
ror
e' he
r ct nt
r ier
. i e .1

l .I . 533F.d 1 42,1 (11hCi. ) Onl diagee t t t' r notrltd- wih
nv, nc,
3 3 345 t r 2008 . y s r mens ha s e
a
eae
t
a la ts m e diecne s - t pe f r a ofdutes s cii d by t c r c do no c
t es o
r t s
o r o m nce
i pe fe
he onta t
t ountas
diputs ' rsng outof t con r c ,a a e notco r d by t sanda d a bir i c a e.
s e a ii
f he ta t nd r
ve e
he t r r taton l us '
'

Tee
lcom lala S v. Kr eal T e
t i, pA
hols e elcom Cor ,248 F. 11 111 ( 1h Ci.2001.
p.
3d 09, 6 1 t r
)

Be a s tes be to t p e e tl iain c n en Dee d n s p ro ma c o ac nrcu l
c u e h u j c f he rs n i g to o c r s f n a t' ef r n e f o ta t a
t
dut - s t ng t t wa not onl f es a e unde t c r t but a s was I e na s'
y
ome hi ha
s
y or ee bl
r he ontac
lo
ntr ve
m o i ton f e utng i - t s ve a lt doc rne clary a is As a r ul,onl faud
tva i or xec i t he e r biiy ti
e l pple .
es t y r
ca mst r e i t a bir ton a e m e i vi ua l c n r
li a g tng he r ta i gr e nt ndi d ly a emovet sdiput fom a bir ton.
hi s e r
r ta i
The Compl i ' onl r e e t fa occ s i CountI a i t De e
ants y ef r nce o r ud
ur n
X ga ns f ndan J mes
t a
Ka ant nos i whi h l e na s a us s hi of mir pr s ntng ç he m a e i f t t t
r ha , n
c nt r ve cc e m
se e e i t
t
t ral ac ha

Defnda Pega usLi ,Lt ,S. h a v s a l et ta por ( antf's cago fom
e nt s nes d, A. ad esel vaiabl o rns t Pli it ) r r
sepr
ai
t y nduc
Brzi t Me c ' (
a l o xio. Compl a ! 33) Kar t
'
.t
. an hanos' m ir esent ton pum oredl i ed

r he
tr ry. 1 t
) n
t
i
I er ve r la
nt na s' e ince a peror nc unde t Chare Pa t (d.a ! 35 . l addi on,
nd
f ma e

6

I e a a gues i is Res e t i wa fau e l i ed t e e i o t a bir ton
nt m ves r
n t
pons hat t s r dulnty nduc o ntr nt he r tai

agre nts cnc l ( 28 a 3)5 Conc r ng t nat e oft fa I ena sys
e me pe i aly. DE
t .
eni he ur
he rud, ntr ves a ,

çth abtain ca s n g tae h r i wa t u h t b wi ava l e tt ..,a d n ta
t je r irto lu e e o itd e en s ho g t o e t ibe n i
l
h
y
n o
Pa ma a s l c ain ....'( 28a 3)
nn nin hel omorto
' DE t .
t r nt nos
N et r of t e a l atons i ldaes t a bir ton c a e. At mos ,Ka a ha '
ihe
hes leg i
nva i t he r tai l us

a lged m ir pr e a i r ga di s p a l lt c be c tue as a fa e
le
s e es nt ton e r ng hi vaiabiiy an
onsr d
r udulnt
i uce t f r I e na t e ut t con r tas a whol l t he o t s r c t t
nd men o nt r ves o xec e he tac
e. t ouc s n he e vies ha

Defnda s ofer d a s
e nt f e nd uppos dl f l t pr de,nott desg of t a bir ton c a e
e y aied o ovi
he i n
he r ta i l us .

Bu t h le g s ( te pef r n e ofte c nrc g, rt e ta is i xse c t i n ta
t i aln e t h ro ma c
c
ol
h o ta tl' ah r h n t i itn e' s o
'
e
que ton ofa bir biiy. John B.Goodman Lt P 'hi v.FSF Con t I ,321 F, 1
si
r ta lt
d. s p
sr, nc.
3d 094,

1 ( 1h Ci.2003)(
096 1 t r
emphassi orgna) Trpl 1 533 F. a 13 I ena s Res e
i n ii l; i e ,
3d t 45. ntr ve ' pons
cli i f c al m or pr sng butupon c os i pec i quikl f l a r. I t fa l
am s a i ly
e omii
l er ns ton, c y als pa t f he r ud ay
i one oft Def nda sdiguii isi ntt t tf ctsils
n
he e nt s sng t de iy, ha a tl uggesst tt fa e e d t
t ha he r ud xt nde o
t f r ai oft conta a a whol l t r ve c t nl doe nots
he o m ton he
r ct s
t. n e na s erai y
s
ugge tt ti wa ,or
s ha t s
bei ve is f t be,nego i i wih a l ii t e iy whe dic sng ot r c r cua
le d tel o
tatng t
eg tma e ntt
n s us i
he onta t l
pr sons W he e a pa t ia tc a e no a g e st tdif r nta e be we n alege fau i
ovii .
r
ry 'riult s
r um nt ha fe e it t e l d r d n
t f m ai oft c r c a faud s ii aly i t i l i ofa ar ta i n p ovii 'i
he or ton he onta t nd r
pecfc l n he ncuson
n bir to r son,'t
ha noti i a e a q si t tt dititc r,r t rt n t ar taor ca a es i t
s
mplc t d ue ton ha he src ou t ahe ha he bir t , n ddr s n he

irti sa c . M ic s k e T ie o I d a so a.v Cy e s 81 F.d 1 0 1 8 ( 1h Ci.
s n tn e c o u e rb f n i n fFl . pr s , 4 3 2 2, 20 1 t r
5 Alhough t Elvent Cic t has no de de t s is t Ni h Cicui pe s svel
t
he e h r ui
t ci d hi s ue, he nt r t r ua i y
expli t tt pary opposng a bir ton may r ie t i i t oft a bir ton c a e f
a ns ha he t
i r ta i
a s he nvaldiy he r ta i l us or
t frttme whe r s
he is i
n e pondi t a moton t c
ng o
i o ompela bir ton. Br d Fund Ca t Co p.v
r ta i
i ge
pial r .

Fasbuc s Fr
t k anchie Cor ,622 F. 9 1 - ( h Ci.201 ( e vng t ti c es
s
p.
3d 96, 00102 9t r 0) obs r i ha n as

whe e pli ifs cl m s a e r e i br a h of eo r c ,t valdiy of t a bir to clus
r antf
ai r oot d n e c
nta t he i t
he r ta i n a e
i
i d b unr l ed t pl ntf prnci epr ye f r i 'and unlke y t be r f e e i t
woul e eat o ai ifs i pl a r or elef'
i l o
e er nc d n he

compl nt. Thus contay t Dee nt's si i t rRe y bre,l ena nee not
ai )
, rr o fnda s ugge ton n hei pl if ntr ves d
ha a ii t d a r bute a gume si f vorofc pe lng a bir ton i isCompl i .
ve ntcpa e nd e t d r
nt n a
om li r tai n t
ant
7

201 ) Thus t Res e cai as fis Si I er veschalng t entr y oft
5.
, he pons l m lo al. nce nt na
le es he iet
he
a e m e ,a nott ma ng oft a bir ton a e m e i pa tculr a a bir orm us be
gr e nt nd
he ki
he r ta i gr e nt n ri a , n r tat
t
t o t de det faud a lga i
he ne o ci he r
le ton.
The onl r ni i s i whe e t ar tai s d t plce. Cha er 1 oft
y emai ng s ue s
r he bir ton houl ake a
pt
he
FAA a l
lows a bir ton t oc onl iwihi t diti i whih t petton f a or r
r ta i o cur y t t n he srct n
c he ii or n de

die i s h a bir i i fld,' 9 U. C.j4, Thus i t ge r FAA cone ,aditit
rctng uc r taton s ie '
S.
, n he neal
txt src

c u t sn j rs ito t o d ra btain t tk pa e es wh r . J i v d M e e 51F.d
o r ha o u idcin o r e r i to o a e lc le ee a n . e r s
r
3
686,691( h Ci,1 . Converel i c meci wih i enai a birto a ee t,
7t r 995)
s y, n or ton t ntr tonal r tain gr mens
Cha t r2 oft saut S mpower t diti tc t$o diec t ta bir i be hel ...a a
pe
he t t e t
e
s he src our t r t ha r taton
d
t ny
plc t en pr ded f ,whehert tpl c i wihi orwihoutt Unied St t , Bauhi a
a e her i ovi
or
t ha a e s t n
t
he t
aes'
'
ni

Cor v Chi Nat1M ac ney & Equè.I tdrEx tCo . 81 F. 247,250 (t Ci.
p. . na
hi r
mpor
por w , 9 2d
9h r

1 8 )( u tn 9 U.. j2 6 ; e alo J i,51F.d a 5 (xpann t a t t ee tn t e
9 7 q oi g
SC. 0 ) s e s an
3 t 91 e liig h t o h x e t h
Conve i a FAA c lc i t srgad,t fr rgover ) Therf e,t sCour ha t
nton nd
ontit n hi e r he o me
ns.
eor hi
t s he

a to i t o d r abtain t tk pa e i a fr in j rs ito - b t o l wh n te
uh rt o r e r irto o a e lc n o eg u idcin u ny e h
y
abirton' l ai hasbee t ovde f . 9U. C,j206.
r tai s oc ton
n i i d or' S.
pr
'
Pa t1oft Cha t Pa t c ans v i feds lyi outt s cii oft o de .
r
he
rer ry ont i arous i l a ng
he pe fcs he r r

( 18 a 1. Box 25 t r n c ansl
DE - t )
heei onti angua desgnai a plc ofabirton a alo
ge i tng
ae
r tai nd s
cr s r f r ncngs e
os -e e e i ubs quen clus s
t a e:

La a dAr i ai (tt 1 ()1 ( )o 1 c o C11 i 1 ( ) g e d
w n bt t sae 9 a 9 b r 9() f 9 f 9 c a re
r on
as saePlceofAr tain (fnotfle i 1 a)s la y)( 1
lo tt a
birto i
ild n 9( hal ppl Cl 9)
London arbiraton,Engls La
t i
ih w

(d.. Pa t1 c ai mor f l a tc aed c r ttr ,i udi apr son o 4la a
1 4 r 1 ont ns e uly riult ontac ems ncl ng ovii n iww nd

Ar tai '( ci 1 . (d.a 4- . Howev ,aswih ot r ee s ofPat1,va i
birton' Se ton 9) 1 t 5)
er
t he lment
r 1 rous
s ec i of Se i 1 ha be n sr k t oug The r as f t s a
ubs tons
cton 9 ve e tuc hr h.
e on or hi ppea s t be,a an
r o
s

a trs e ans t tt s ectonswihi i r alenai ' t e h ot r (d.a 5 . The
seik xpli , ha he ubs i
t n i e tr tves' o ac he . 1 t )6
a
a hor of t contac l t unt
ut
he
r t ef
ouche t pr son ca lng f a bir ton i Ne Yor $i
d he ovii
li or r ta i n w
k ûn

a or nce wih t r esoft Socet ofM aii Ar tat s l ',(#.a 5,1 b),but
cc da
t he ul
he i y
rtme bir or, nc, / t 9( )
'
sr k t s ci desgnai London a t st ofabir ton (d.at4,1 a). Cl ry,Pa tl
tuc he e ton i tng
s he ie r tai i
9( ) eal r
a Pa t1 a ei c lc wih e h ot r
nd r 1 r n onfit t ac he .
Thi c lc i compounded by a bi tesi t ve y pr sonsose i y desgne t
s onfit s
m guii n he r ovii
tnsbl
i d o
r ol i e na i ons sences The sgna u e pag c l f t s lcton ma i Pa tlt
es ve ntr l nc it i .
i tr
e als or he ee i
de n r o

s re t tma i Pa tI. Thetxtsaes i rl ntpar,dgj t e ntofaconfi of
upe sde ha de n r I
e tt , n eeva
t iin he ve
lct
c to t pr sons of Pa t l s l pr va lover t e of Pa t1 t t e e of s h
ondiins he ovii
r
ha l e i
hos
r 1 o he xtnt
uc

c lc. (d.a 6) Bu sgniia l oneoft ot rs e tonsofSe ton 1 s e ton( ,
onfit' 1 t . t i fc nty,
'
he he ubs ci
ci 9, ubs ci c)
whi h a s pr des f t s e a y of Pa t1 has be n sr ck t oug 7 I lg of t t
c l o ovi
or he upr m c
r ,
e tu hr h. n i ht ha
ale a i doe t sgna ur pa sr esila y a s d Bo 25 e n bec ule
tr ton, s he i t e ge' ul tl ppl nd houl x
ve
ons td?
si
o e ol or m
TheCo twilnotve ur t un a et s knot. Theque ton ofhow t r s vef u
ur l
nt e o t ngl he e
s

s l ci a bi tesi a va i a bir ton clus i ,a frast Cour ca t l a is offrt
e e ton m guii n
ld r tai
a es sa
he
t n el, n s ue is
i es i i t Elve h Cic t Ot r cr t ha howe ,de twih t s is . The
mpr son n he e nt r ui, he icuis ve,
ver al t hi s ue

la i g c s o t s b e ti Ba hn a Cop.v Chn Nat n lMac iey,81 F,d 2 (t
e d n a e n he u j c s u ii r . ia i a
o
hn r 9 2 47 9h
Ci.1 ) Thee,t c twa co r ed wih a c rc si atng i o pargrph t t
r 987 . r he our s nfont
t onta t tpul i n ne a a ha
a bir i m us tkepl e b or apa li Pe ng,Chi buti a pa agr ph bel l e y a
r taton
ta
ac ef e
ne n ki
na, n
r a
ow eR mpt
blnk s ce t ha bee pr de t desgnae t st ofa bir ton. l a 248. Notng t t
a pa hat d n ovi d o i t he ie
r ta i
d. t
i ha

iqh t p r ga hs ae muu l e cu ie' t e Nit Cic i f u d t e c n rc f cal
i e wo aa rp r tal x l sv y h nh r ut o n h o ta t a il
g
y
'
y

'Thats
ame a t rs i tuct t pa te t dndia e't agr e t at r tve i Box 25 ofPa t
se ik nsr s he ri s o t c t ' he e d-o le na i n
i
r

1 (d. t5)
.1 a .
7S b e to 1 () sae ,i an d s u e a iig o to te Ch re Pa t s alb r fre t
u s cin 9 c tt s i l y ip t rsn u f h a tr ry h l e e erd o
l
abtaina tePlc idiae i Bo 2 ,s be t ot ep o e u e a p ia l t ee Thelws
rirto t h a e n c td n x 5 u j c t h r c d r s p lc b e h r .
a
oft pl c idia e i Box 25s l gove n t Cha trPa t '
he a e n c t d n
ha l
r he
re ry.
'
9

i m bi
s guous' I a 249. M or r t ewasno r or evi eortxt cl st t pari '
a
.' d. t
eove , her
ec d denc
e ual ue o he tes

i e . I Thus asa ma troflw,t pa te Snt nde t l ve t i s open. 1 Ha ng
nt nt d.
,
te
a he ris s e d o ea he s ue
i
' d. vi
'
f
ound t tt c r c f l d t s ciy a f u f ra bir ton, he Cour pr e t t is
ha he onta t aie o pe f or m o r ta i t
t oce ded o he s ue
ofwhe et c pe a bir ton. The Cou tuli ael uphe d t diti tcour' or rc
r o om l r tai
r tm t y
l he src
ts de ompeli
lng

a bir tonbe or t AAA i t Ea tr DititofCaiom i wher t l rc ts t l a
r tai
f e he
n he se n src
lf a,
e he owe our a . d. t

250. TheNit Cic tr i on t fc t tj 206 oft FAA pe te dititc t t
nh rui eled he a t ha
he
nnitd src ours o
he bir i
c mp labtai n o tie o t ertrio ilj rs ito onl when t ar taton agreem ent
o e r irto usd f h i ert ra u id cin y

t ovi f ' a pl c whih t a e m e i quesi - t ough is a guiy - di not
t
pr ded or' a e, c he gr e nt n
ton hr
t mbi t
d .

Asac n e u n e j2 9 e c p int j rs ito a lmi dd n ta pl a ted src c u ts
o s q e c , 06 s x e to o u idc in l i t i o p y, nd h itit o r'
s
onl lgii ae opton - i t a e e oft pa t sm ut a ee
y e tm t
i
n he bs nc
he ry'
ual gr mentot r s - wa t f l
he wie
s o al

b c o j4 a do d rabtain i iso dsrc.1 ; c o d Co to S r e n LLC v T c .
ak n
n r e r irto n t wn itit d.a c r nr l c e nig
. eh
Applc in & Pr Co. HcM c- enam,687 F. 1 1 71 ( Ci.201 ( di
iato
od. ,
vit
3d 63, 70- 3d r 2) uphol ng
i ntc diti c t or r whe e pari s mit ke y pr de f a bir i t t ke pl e
de ial srct our de
r
te
sa nl ovi d or r taton o a
ac

bef eS exitnt' ope eniy) Jai 51F. a 690(e ri diti cour fndi t t
or t
non- se 'Eur an tt ; n,
3d t
rvesng srct ti ng ha

i c d notc
t oul
ompe abirton i isown tnior bec us ij4 i ceal a iabl whe a
l r tai n t
e t y a e t s l ry pplc e n n
abirtonagee
r tai r mentf l t s iy aplcef abirton')
ais o pecf
a or r tai ',
Bauhi a a t c s r aed t i ar on a1f swih r s c t t f c soft sc e.
ni nd he a es elt o t e
1 our t e pe t o he a t
hi as

Asdicus e t Cha trPa t c ai c r di t y pr sonson t ar ta i n f u a i
s s d, he re ry ont ns onta cor ovii
he bir to or m nd s

t rf r a i u u . Un e s c cr u tn e ,t e Co r lc s j rs it t c mp l
heeo e mb g o s
d r u h ic msa c s h
u t a k u id ci o o e
on
a birton i eihe N e Yor or Londo l t d,t Pa tes s lhave t opporuniy t
r ta i n t r w
k
n. nsea he ri hal
he
t t o
s e ta f um a pa by m u ua ag ee t l t Pa te c nnots tl on a a bir t ,t n
elc or
nd nel
t l r men . f he ris a
e te
n r ta or he

t Cour s l or rabirton t behed bef et Amei n Ar tai Ass ai (
he
t hal de r tai o
l or he
rca bir ton ociton AAA)
i M i m i Fl i ,us ng t tor ni ton' r es
n a , or da i ha ga za i s ul .

10

Ac or ngl i i he eb ORDERED a ADJUDG ED t tDef nda s Andr da
c di y, t s r y
nd
ha
e nt
ome
ne
d. A , nsma, a
nd
St ms p Com or ton, Am e i n Na gai l , Peg us Li s,Lt S. . Pa
ea hi
ai
rca
vi ton, nc.
as

J
amesKaaha 'M oton t CompelAr tai or i t Alenai Moton t Dimis(
rt nos
i o
birton ,n he tr tve, i o s s DE
20)i GRANTED I PART a DENI I PART,TheM otoni GRANTED t t e e
s
N
nd
ED N
i s
o he xtnt
i se t c
t e ks o ompe a bir i
l r taton, The M oton i DENI t t e e i s e t c
i s
ED o he xt nt t e ks o ompe
l
ri s hal,
i
7, vie
a bir ton i London,Englnd unde Engls lw. The Pa te s l by Aprl5,201 ad s
r ta i n
a
r
ih a

t Cour whe he t y ha ag ee t a a bir ton pa a f um . Shoul t Pa te f i t
he
t t r he ve r d o n r ta i
nel nd or
d he ris al o
a e Iwilc
gr e, l ompela bir ton bef e t AAA i M im i F1 ' by s pa ae or r
r ta i
or he
n a ,
e r t de .

DONEA ORDE D i C a esa sP1 Bah Foiatid dyo
ND
RE n hmbr,t t a ec, lr ,hs l a f
d
M a ch,201
r
7.

'
ALD M .M I
DDLEBROOKS
UNI
TED STATES DI
STRI J
CT UDGE

c
c:

A1 Couns ofRe d
1
el
cor

11