GE Energy Power Conversion France SAS v. Outokumpu Stainless USA LLC
Issues
Does the Convention on the Recognition of Enforcement of Foreign Arbitral Awards, implemented under Chapter 2 of the Federal Arbitration Act, allow a non-signatory to an arbitration agreement to invoke the equitable estoppel doctrine to compel arbitration?
This case asks the Supreme Court to consider whether the New York Convention permits a non-signatory to an international arbitration agreement to compel a signatory to arbitrate. GE Energy Power Conversion France SAS, Corp. argues that non-signatories may compel a signatory to arbitrate by invoking equitable estoppel because it is available for domestic arbitration under Chapter 1 of the Federal Arbitration Act. GE further argues that this is permissible because the Convention contemplates that countries will apply their pro-arbitration domestic laws. Outokumpu Stainless USA, LLC, et al. disagrees, arguing that the Convention’s text and structure impose a baseline writing requirement to show consent to arbitration. The Court’s decision will affect business parties’ calculation of their arbitration liabilities and how carefully they draft the scope of their arbitration agreements.
Questions as Framed for the Court by the Parties
Whether the Convention on the Recognition and Enforcement of Foreign Arbitral Awards permits a non-signatory to an arbitration agreement to compel arbitration based on the doctrine of equitable estoppel.
On November 25, 2007, Thyssenkrupp Stainless USA, LLC (now Outokumpu Stainless, USA, LLC (“Outokumpu”)), a U.S. corporation, entered into three contracts with F.L. Industries Inc. (now Fives St Corp. (“Fives”)), also a U.S. corporation, for the purchase of cold rolling mills. Outokumpu Stainless USA, LLC v.
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Edited by
The authors would like to thank Professor John J. Barceló III for his insights.
Additional Resources
- R. Zachary Torres-Fowler: UPDATE: GE Energy Power Conversion France SAS v. Outokumpu Stainless USA, LLC: U.S. Supreme Court Grants Writ of Certiorari to Decide the Question of Whether the New York Convention Permits Non-Signatories to Compel Arbitration Under the Doctrine of Equitable Estoppel, JD Supra (July 2, 2019).
- Gilbert A. Samberg: Non-Signatory to Arbitration Agreement Cannot Compel Arbitration When New York Convention Applies, National Law Review (October 23, 2018).
- Keith R. Fisher, Certiorari Grant: Nonparty Compelling Arbitration under N.Y. Convention, American Bar Association (August 1, 2019).