F.D. Import and Export Corp. v. M/V Reefer Sun case brief summary

F.D. Import and Export Corp. v. M/V Reefer Sun case brief

Facts: F.D. Import arranged the shipment of bananas from Ecuador to the Ukraine. F.D. Import contracted with suppliers and carriers to have the bananas shipped. In the contract was a “Charter Party” that listed private carriers and was signed by the private carriers, who agreed that “all disputes arising under [the] ‘Charter Party’ are to be referred to arbitration in London.” The bananas didn’t meet the specifications and were fraudulently packed so F.D. Import brought this action against suppliers and carriers. All defendants moved to dismiss on the ground of the arbitration clause.

 

Issue: Are the parties bound to the arbitration clause?

 

Holding: Yes. Although F.D. Imports did not have actual notice of the broad arbitration clause, it is clear that they had constructive notice. 

 

Reasoning:

-Broad Arbitration Clause: “All disputes arising ... are to be referred to arbitration.”

-Narrow Arbitration Clause: “All disputes arising among party X and Y ... are to be referred to arbitration.”