Application of States Marine Corp. of Delaware

• Citation: 127 F. Supp. 943
• Parties: Application of STATES MARINE CORP. OF DELAWARE to confirm the award of arbitrators in the Arbitration between Power Steamship Co., Ltd., as owners of THE M. V. DERRYNANE and States Marine Corp. of Delaware and a Companion Motion.
• Decision Date: 07 September 1954
• Court: U.S. District Court — Southern District of New York

127 F. Supp. 943

Application of STATES MARINE CORP. OF DELAWARE to confirm the award of arbitrators in the Arbitration between Power Steamship Co., Ltd., as owners of THE M. V. DERRYNANE and States Marine Corp. of Delaware and a Companion Motion.

United States District Court, S. D. New York.

September 7, 1954.

Nelson, Healy, Baillie & Burke, New York City, for Power S. S. Co., Ltd.

Kirlin, Campbell & Keating, New York City, for States Marine Corp. of Delaware.

NOONAN, District Judge.

This matter is before the court on two motions; one to confirm, and the other to vacate, an award of arbitrators pursuant to the U. S. Arbitration Act, 9 U.S.C. §§ 9 and 10, respectively. The award was rendered in connection with a dispute under a time charter party dated January 5, 1951.

That there should be great hesitation in upsetting an arbitration award is clear. Karppinen v. Karl Kiefer Machine Co., 2 Cir., 187 F.2d 32. But if the arbitrators determined matters not within the terms of the arbitration agreement, or failed to determine matters within the terms of such agreement, they exceeded or imperfectly executed their jurisdiction, and their award should be vacated. Texoma Natural Gas Co. v. Oil Workers I. U., etc., D.C., 58 F. Supp. 132, affirmed 5 Cir., 146 F.2d 62, certiorari denied 324 U.S. 872, 65 S.Ct. 1017, 89 L.Ed. 1426, rehearing denied 325 U.S. 893, 65 S.Ct. 1183, 89 L.Ed. 2004. Whether or not they did exceed or imperfectly execute their jurisdiction is the sole issue before this court with respect to both motions; and in seeking to show that the arbitrators so erred, the owners have the burden of establishing that fact. American Almond Products Co. v. Consolidated Pecan S. Co., 2 Cir., 144 F.2d 448, 451, 154 A.L.R. 1205. The unanimity of the award is immaterial to a consideration of this question.

In the American Almond Products Co. case, supra, Judge Learned Hand stated at the end of the opinion:

"Arbitration may or may not be a desirable substitute for trials in courts; as to that the parties must decide in each instance. But when they have adopted it, they must be content with its informalities; they may not hedge it about with those procedural limitations which it is precisely its purpose to avoid. They must content themselves with looser approximations to the enforcement of their rights than those that the law accords them, when they resort to its machinery."

The dispute between the parties was submitted to arbitration in accordance with a clause in the charter party which provided:

"That should any dispute arise between Owners and the Charterers, the matter in dispute shall be referred to three persons at New York, one to be appointed by each of the parties hereto, and the third by the two so chosen; their decision or that of any two of them shall be final, and for the purpose of enforcing any award, this agreement may be made a rule of the Court. The Arbitrators shall be commercial men."

In submitting the dispute to arbitration in accordance with the above proviso, the parties also entered into a "Stipulation with Respect To...