United States / 29 September 1997 / United States, U.S. Court of Appeals, Seventh Circuit / Generica Ltd. v. Pharm. Basics, Inc. / 96-4004
| Country | United States |
| Court | United States, U.S. Court of Appeals, Seventh Circuit |
| Date | 29 September 1997 |
| Parties | Generica Ltd. v. Pharm. Basics, Inc. |
| Case number | 96-4004 |
| Applicable NYC Provisions | V | V(1)(b) |
| Languages | English |
| Summary | Generica Limited (“Generica”) and Pharmaceutical Basics, Inc. (“PBI”) entered into an agreement for development, manufacturing and marketing of clomiphene citrate. A dispute arose and Generica initiated arbitration under the auspices of the International Chamber of Commerce, pursuant to an arbitration clause in the contract. The sole arbitrator issued an award against PBI. Generica brought an action before a United States Federal District Court to confirm the award. PBI opposed the confirmation and asked the court to vacate the award. The District Court confirmed the arbitral award. PBI appealed, arguing that due process had been violated pursuant to Article V(1)(b) NYC because the sole arbitrator had refused to permit PBI to cross-examine a witness alleged to be critical to its case. The United States Court of Appeals for the Seventh Circuit confirmed the judgment of the District Court and confirmed the award. In so ruling, it held that the enforcement of an arbitral award should be denied or vacated pursuant to Article V(1)(b) NYC if the party challenging the award proves that he was not given a “meaningful opportunity to be heard”. The Court held that the curtailment of cross-examination of a witness was not such a fundamental procedural defect so as to constitute a violation of the United States due process jurisprudence and the NYC. It thus concluded that PBI had failed to establish a due process defense to enforcement. |
Attachment (1)
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