Nederlandse Erts-Tankersmaatschappij v. Isbrandtsen Co.
| Decision Date | 18 December 1964 |
| Docket Number | Docket 28970.,No. 122,122 |
| Citation | 339 F.2d 440 |
| Parties | NEDERLANDSE ERTS-TANKERSMAATSCHAPPIJ, N.V., Plaintiff-Appellant, v. ISBRANDTSEN COMPANY, Inc. and Jacob Isbrandtsen, Defendants-Appellees. |
| Court | U.S. Court of Appeals — Second Circuit |
Clement C. Rinehart, New York City (Kirlin, Campbell & Keating, New York City), for appellant.
Leonard S. Leaman, New York City (Lord, Day & Lord, New York City), for appellee Isbrandtsen Co., Inc.
Bernard B. Polak, New York City (Lotterman & Weiser, Joseph Lotterman, New York City, of counsel), for appellee Jacob Isbrandtsen.
Before LUMBARD, Chief Judge, and HAYS and MARSHALL, Circuit Judges.
This action was brought on an alleged contract of guaranty by defendants of performance of a charter party between plaintiffs and a third party, Canadian Foreign Steamship Company, Ltd.
The charter party contains a clause providing for arbitration of "any and all differences and disputes of whatsoever nature arising out of this Charter." Plaintiff claiming that Canadian Foreign has failed to pay the agreed upon charter hire, has instituted arbitration proceedings against Canadian Foreign.
In the district court the defendants moved for a stay pending arbitration and the motion was granted under Section 3 of the United States Arbitration Act, 9 U.S.C. § 3 (1958).1
Granting of the stay cannot be justified under the terms of the Arbitration Act. Defendants are not parties to the arbitration agreement. The issues of the present action are not referable to arbitration between the parties.
However, the district court had inherent power to grant the requested stay. While the power to stay has ordinarily been exercised in situations in which another proceeding was pending in the state courts, see, e. g., Milk Drivers Union v. Dairymen's League Co-op. Ass'n, 304 F.2d 913 (2d Cir. 1962); Mottolese v. Kaufman, 176 F.2d 301 (2d Cir. 1949), a stay may also be appropriate where the pending proceeding is an arbitration in which issues involved in the case may be determined.
The conditions under which such a stay may be granted were stated by Mr. Justice Cardozo:
The plaintiff points out that the arbitration between Canadian Foreign and the plaintiff, which is taking place in London pursuant to a...
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...for counsel, and for litigants.’ ” WorldCrisa Corp., 129 F.3d at 75 (quoting Nederlandse Erts–Tankersmaatschappij, N.V. v. Isbrandtsen Co., 339 F.2d 440, 441 (2d Cir.1964)). Plaintiffs concede that a stay will not “hamper the progress of the proceeding,” and the Court concludes that Aggrega......
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