United States / 08 February 2012 / United States, U.S. District Court, Southern District of New York / Copape Produtos de Pétroleo LTDA. v. Glencore LTD. / 11 Civ. 5744 LAK
Country | United States |
Court | United States, U.S. District Court, Southern District of New York |
Date | 08 February 2012 |
Parties | Copape Produtos de Pétroleo LTDA. v. Glencore LTD. |
Case number | 11 Civ. 5744 LAK |
Applicable NYC Provisions | II | II(3) |
Source |
online: PACER |
Languages | English |
Summary | Plaintiff, Copape Produtos de Pétroleo Ltda. (“Copape”), entered into a contract with the Defendant, Glencore Ltd. (“Glencore”), for the sale and purchase of goods. The parties’ contract incorporated by reference Glencore’s general terms and conditions, which contained an arbitration agreement. Copape had had the opportunity to read Glencore’s general terms and conditions and the arbitration agreement but it never requested to do so. After a dispute arose, Copape sued Glencore in Brazil, while Glencore commenced arbitral proceedings before the American Arbitration Association. Copape then requested that the United States District Court for the Southern District of New York enjoin arbitration, arguing that the parties had not entered into an agreement to arbitrate. Glencore, on the other hand, requested the Court to compel arbitration of the parties’ dispute. The United States District Court for the Southern District of New York compelled arbitration, holding that by incorporating Glencore’s general terms and conditions, which contained an arbitration agreement, into their contract the parties had validly agreed to arbitration. The Court rejected Copape’s argument that because it had not expressly approved Glencore’s proposed arbitration agreement, it could not have been incorporated into the contract. The Court held that Copape had had the opportunity to review and object to the arbitration clause, and its failure to do so had implied its acquiescence to the arbitration agreement. Accordingly, it ruled that Copape was contractually bound to arbitrate its disputes with Glencore. |
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