Carcich v. Rederi A/B Nordie

389 F.2d 692, 1968 A.M.C. 299
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 5, 1968
DocketNos. 194-195, Dockets 31285-31286
StatusPublished
Cited by166 cases

This text of 389 F.2d 692 (Carcich v. Rederi A/B Nordie) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carcich v. Rederi A/B Nordie, 389 F.2d 692, 1968 A.M.C. 299 (2d Cir. 1968).

Opinion

KAUFMAN, Circuit Judge:

These consolidated appeals have their source in actions brought to recover damages for injuries allegedly suffered by longshoremen while loading or discharging cargo from vessels time-chartered by Cunard Steamship Company, Ltd. (Cunard), from the owners, the appellees here. The longshoremen sued the owners, who in turn filed third-party complaints against Cunard. Judge Cannella, S.D.N.Y., denied Cunard’s motions to stay the third-party actions pending arbitration, on the ground that Cunard, by its participation in pre-trial proceedings and because of its delay in moving for the stays, waived whatever right to arbitration might have existed under the charter parties between Cunard and the appellees. The district court [694]*694thus never decided whether the underlying disputes were properly subject to arbitration under the charter parties. We reverse and remand to the district court for a determination of this question.

Our ratio decidendi requires an elucidation of the litigation background. Plaintiff Carcich was allegedly injured on January 28, 1963, while working aboard the SS Nordic, which was then owned by Rederei A/B Nordic (but sued as Rederi A/B Nordie) and under time charter to Cunard. He filed his complaint on February 4, 1964, naming both the shipowner and Cunard as defendants. The shipowner’s answer contained a cross-complaint against Cunard, which Cunard answered on July 15, 1964, alleging that the claim was one which should be submitted to arbitration in accordance with the terms of the charter party.1 On September 2, 1964, Carcich’s complaint against Cunard was dismissed on its motion and the shipowner’s cross-complaint was ordered to be designated a third-party complaint. While this motion was pending, Carcich filed his note of issue on August 13, 1964. On November 19, 1965, over a year later, a pre-trial conference was held, and still another year almost passed before a pre-trial order, consented to by all the parties, was filed on June 14, 1966. This order recited, inter alia, that Cunard was still maintaining that its dispute with the owners was subject to arbitration under Clause 23 of the time charter agreement. Five months later Cunard formally moved for a stay pending arbitration,2 but on January 5, 1967, Judge Cannella denied the motion; this appeal followed.

The procedural history of the suit instituted by Calderon is somewhat more complex. The alleged injury to Calderon occurred on October 1, 1963, while he was working on the M/S Crux, then under time charter to Cunard from Det. Bergenske Dampskibsselskab, the owner and one of the appellees. He sued only the shipowner, who, on June 2, 1964, served Cunard with a third-party complaint alleging two causes of action— (1) for indemnity because of a breach of warranty of workmanlike service (in Cunard’s capacity as stevedore3), and (2) violation of the charter party. Cunard’s answer denied liability, and asserted as an affirmative defense to the second cause of action that it should be referred to arbitration in London pursuant to the charter party.4 Several months later, Calderon filed a note of issue and shortly thereafter Cunard produced certain documents pursuant to the longshoreman’s motion for discovery. Pre-trial conferences were held in November 1965 and March 1966, and Cunard formally moved in November 1966 to stay both of Det. Bergenske Damp-skibsselskab’s causes of action pending arbitration. Judge Cannella denied the motion on January 5, 1967. Thereafter, a pre-trial order similar to that entered in Carcich (reciting that Cunard contended the action should be stayed pending arbitration) was signed by Judge Motley, who, presumably, was not aware that over three months earlier Judge Cannella had refused to issue a stay.

Before we discuss the merits of the appeal we must determine whether we have jurisdiction. It is well settled that a denial of a stay pending arbitration is not appealable as a final order under 28 U.S.C. § 1291. Baltimore Contractors, Inc. v. Bodinger, 348 U.S. 176, 75 S.Ct. 249, 99 L.Ed. 233 (1955). But under some circumstances, the stay [695]*695may be treated as a denial of an interlocutory injunction under 28 U.S.C. § 1292(a) (1), and hence appealable. The Supreme Court has made it clear that the determination of appealability under this section (until Congress acts) depends not on the desirability of allowing interlocutory appeals, but on outmoded historical distinctions. See Baltimore Contractors, Inc. v. Bodinger, supra. We recently have examined at length the law in this area, see Standard Chlorine of Delaware, Inc. v. Leonard, 384 F.2d 304 (2d Cir. 1967), and Penoro v. Rederi A/B Disa, 376 F.2d 125 (2d Cir.), cert. denied, Rederi A/B Disa v. Cunard Steamship Co., 389 U.S. 852, 88 S.Ct. 78, 19 L.Ed.2d 122 (1967), and thus find it unnecessary to repeat what we have already said on this subject. It is sufficient for our purposes that we note that the denial of a stay pending arbitration is appealable under 28 U.S.C. § 1292 (a) (1) if the underlying action is at law, Shanferoke Coal & Supply Corp. v. Westchester Service Corp., 293 U.S. 449, 55 S.Ct. 313, 79 L.Ed. 583 (1935), and is not appealable if the underlying action is in equity, Standard Chlorine of Delaware, Inc. v. Leonard, supra, or in admiralty, Penoro v. Rederi A/B Disa, supra. Since the underlying actions in the present suits are at law, it follows that Judge Cannella’s order is appeal-able ; accordingly, we approach the basis for the District Court’s holding that Cunard had waived whatever contractual right it possessed to arbitrate5 with a brief discussion of the cases on the subject.

The leading case in this Circuit is Kulukundis Shipping Co. v. Amtorg Trading Corp., 126 F.2d 978 (2d Cir. 1942), in which libel had been filed for breach of a charter party, and the defendant’s answer made no mention whatsoever of an arbitration clause in the charter party. In fact, the defendant contended that it was not bound by the charter party because it had been improperly executed. Five months later a pre-trial order was filed, which stated that “Both sides will be ready when reached.” The first mention of arbitration came ten months after the libel was filed when defendant sought to amend its answer and the case was already on the ready day calendar. This Court reversed the district court’s finding that defendant had waived its right to arbitrate by its participation in the litigation and because of its delay in moving for a stay. It would appear that Kulukundis makes the present cases a fortiori. Here, arbitration was raised by Cunard at an early date and continuously asserted.6 In addition, in

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pierre v. Rochdale Village
E.D. New York, 2020
Brownstone Investment Group, LLC v. Levey
514 F. Supp. 2d 536 (S.D. New York, 2007)
Tucker v. Fireman's Fund Agribusiness, Inc.
365 F. Supp. 2d 821 (S.D. Texas, 2005)
Hales v. ProEquities, Inc.
885 So. 2d 100 (Supreme Court of Alabama, 2003)
Continental Insurance v. M/V "Ocean Jade"
269 F. Supp. 2d 348 (S.D. New York, 2003)
Dapuzzo v. Globalvest Management Co., L.P.
263 F. Supp. 2d 714 (S.D. New York, 2003)
Jockey International, Inc. v. M/V "LEVERKUSEN EXPRESS"
217 F. Supp. 2d 447 (S.D. New York, 2002)
Eastern Fish Co. v. South Pacific Shipping Co., Ltd.
105 F. Supp. 2d 234 (S.D. New York, 2000)
Moran v. Carey Limousine, Inc.
737 A.2d 532 (District of Columbia Court of Appeals, 1999)
Touton, S.A. v. M v. Rizcun Trader
3 F. Supp. 2d 612 (E.D. Pennsylvania, 1998)
Acquaire v. Canada Dry Bottling
906 F. Supp. 819 (E.D. New York, 1995)
Painewebber v. Faragalli
Third Circuit, 1995
Kansallis-Osake-Pankki v. Kouri
861 F. Supp. 14 (S.D. New York, 1994)
Kaliden v. Shearson Lehman Hutton, Inc.
789 F. Supp. 179 (W.D. Pennsylvania, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
389 F.2d 692, 1968 A.M.C. 299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carcich-v-rederi-ab-nordie-ca2-1968.