Innospec Ltd. v. Ethyl Corporation

Filing 32

MEMORANDUM OPINION signed by District Judge John A. Gibney, Jr. on 10/27/2014. Copies as directed to counsel of record.(jsmi, )

IN THE UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF VIRGINIA
Richmond Division

INNOSPEC LTD.,

Plaintiff,
V.

Civil Action No. 3:14-cv-158-JAG

ETHYL CORPORATION,
Defendant.

MEMORANDUM OPINION

This matter comes before the Court on the defendant's Motion to Compel Arbitration. (Dk.
No. 20.)

In this action, Innospec seeks a declaratory judgment stating that it has the right to

terminate its requirements contract with Ethyl Corporation because of changed, previously
unforeseeable economic conditions. Ethyl now asks the Court to compel the matter to arbitration

and either stay proceedings or dismiss the claim outright.

Although Ethyl urges the Court to

determine the arbitrability of Innospec's claim, the arbitration provision in the parties' contract

clearly and unmistakably commits questions of arbitrability to the arbitrator. The Court therefore
GRANTS the motion and DISMISSES the claim without prejudice.
1. Material Facts

Innospec, a fuel additive manufacturer, entered a contract in 1998 to supply Ethyl
tetraethyl lead ("TEL"), a lead-based fuel additive, and amended the agreement in 2007 to tie the
price of TEL to the United Kingdom retail price index. With the global appetite for leaded motor

fuel substantially weakened, however, Innospec asks the Court for a declaratory judgment that it