Brittania-U Nigeria Limited v. Chevron U.S.A. Inc. et al

Filing 39

ORDER entered DENYING 38 MOTION to Alter Judgment.(Signed by Judge Lee H Rosenthal) Parties notified.(leddins, 4)

United States District Court
Southern District of Texas

ENTERED
IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION
BRITTANIA-U NIGERIA LIMITED,
Plaintiff,
V.
CHEVRON U.S.A, INC, ALI MOSHIRI
and MONCEF ATTIA,
Defendants.

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September 14, 2016
David J. Bradley, Clerk

CIVIL ACTION NO. H-16-1457

ORDER
Britannia-U has moved for an amendment to the dismissal-without-prejudice order to one
staying the case pending the arbitration. (Document Entry No. 38). In Alford v. Dean Witter
Reynolds, Inc., 975 F.2d 1161 (5th Cir. 1992), the Fifth Circuit acknowledged that the Federal
Arbitration Act states that the “court shall stay the trial of the action until the arbitration is
complete,” but held that this rule was not intended to limit dismissal of a case in the proper
circumstance. Id. at 1164. The Fifth Circuit held that “[t]he weight of authority clearly supports
dismissal of the case when all of the issues raised in the district court must be submitted to
arbitration.” Id. (emphasis in original). That is true here as well. In this case, as in Alford,
“retaining jurisdiction and staying the action will serve no purpose.” Id. (quoting Sea-Land Serv. v.
Sea-Land of Puerto Rico, 636 F.Supp. 750, 757 (D.P.R. 1986)).
A stay is not required. See Apache Bohai Corp. v. Texacho China, 330 F.3d 307, 311 & n.9
(5th Cir. 2003). It is well within this court’s discretion to dismiss rather than stay the action. This
circuit counsels district courts to follow this practice. See Fedmet Corp v. M/V Buyalyk, 194 F.3d

674, 676 (5th Cir. 1999). The court denies Britannia-U Nigeria Limited’s motion to amend the order
of dismissal. (Docket Entry No. 38).
SIGNED on September 14, 2016, at Houston, Texas.

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Lee H. Rosenthal
United States District Judge

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