Jiangsu Beier Decoration Mater v. Angle World LLC

52 F.4th 554
CourtCourt of Appeals for the Third Circuit
DecidedNovember 3, 2022
Docket21-3143
StatusPublished
Cited by11 cases

This text of 52 F.4th 554 (Jiangsu Beier Decoration Mater v. Angle World LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jiangsu Beier Decoration Mater v. Angle World LLC, 52 F.4th 554 (3d Cir. 2022).

Opinion

PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _______________

No. 21-3143

JIANGSU BEIER DECORATION MATERIALS CO., LTD., Appellant

v.

ANGLE WORLD LLC

_______________

On Appeal from the United States District Court for the Eastern District of Pennsylvania (District Court No. 2-21-cv-02845) U.S. District Judge: Honorable Anita B. Brody _______________

Submitted Pursuant to Third Circuit L.A.R. 34.1(a) On September 21, 2022

Before: AMBRO, RESTREPO, and FUENTES, Circuit Judges

(Filed: November 3, 2022) _______________ Richard A. Kaye Barnes & Thornburg, LLP 3475 Piedmont Road, N.E., Suite 1700 Atlanta, Georgia 30305

William J. Burton Barnes & Thornburg, LLP 1000 N. West Street, Suite 1500 Wilmington, DE 19801

Counsel for Appellant Jiangsu Beier Decoration Materials Co., Ltd.

Stephen M. Packman Archer & Greiner, P.C. Three Logan Square 1717 Arch Street, Suite 3500 Philadelphia, PA 19103

Brian M. Gargano Jiangang Ou Archer & Greiner, P.C. 3040 Post Oak Blvd, Suite 1800 Houston, TX 77056

Counsel for Appellee Angle World LLC

OPINION OF THE COURT _______________

FUENTES, Circuit Judge.

2 Appellant Jiangsu Beier Decoration Materials Co., Ltd. (“Jiangsu”), a China-based manufacturer, obtained an arbitration award in China against Appellee Angle World LLC (“Angle World”), a Pennsylvania-based distributor. Jiangsu seeks to enforce its foreign arbitration award in the United States, but Angle World claims that it never agreed to arbitrate. This case requires us to examine the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “New York Convention”), an international treaty that permits the recipient of a foreign award to petition a United States district court for confirmation.1

The District Court dismissed Jiangsu’s confirmation petition after determining that Jiangsu failed to prove that Angle World agreed to arbitrate the parties’ underlying dispute. For the reasons set forth herein, we will vacate the District Court’s order of dismissal and remand this case for further proceedings. We take no position on the ultimate question of arbitrability.

1 June 10, 1958, 21 U.S.T. 2517, T.I.A.S. No. 6997. The New York Convention was initially adopted in 1958 “to encourage the recognition and enforcement of commercial arbitration agreements in international contracts and to unify the standards by which agreements to arbitrate are observed and arbitral awards are enforced in the signatory countries.” China Minmetals Materials Imp. & Exp. Co. v. Chi Mei Corp., 334 F.3d 274, 282 (3d Cir. 2003) (“China Minmetals”) (quoting Sherk v. Alberto-Culver Co., 417 U.S. 506, 520 n.15 (1974)). The United States and China are signatories to the New York Convention. N.Y. Convention, art. XVI.

3 I. Factual Background

A. The Underlying Dispute

Jiangsu is a manufacturer of flooring products based in China. Angle World is a distributor based in Pennsylvania. In 2016, Jiangsu and Angle World agreed that Angle World would serve as Jiangsu’s exclusive distribution agent in the United States. Jiangsu claims that, as of June 2018, Angle World owed it over $1.3 million under the distribution agreement. Angle World disputed Jiangsu’s claim, and the parties attempted to negotiate a settlement.

On June 28, 2018, the parties agreed to a written and signed memorandum of understanding, under which Angle World agreed to pay Jiangsu $528,227.59 within six months (the “June MOU”).2 The June MOU did not contain an arbitration clause. On July 10, 2018, a representative from Jiangsu sent Angle World a revised agreement via email (the “July MOU”). Unlike its predecessor, the July MOU included an arbitration clause, providing as follows:

Any dispute arising from this Memorandum of Understanding shall be settled by and between the two Parties through friendly negotiation. If the dispute cannot be settled through negotiation, the two Parties shall submit the dispute to the China International Economic and Trade Arbitration Commission Shanghai Sub-

2 The parties acknowledge that they both signed the June MOU.

4 Commission for arbitration according to the arbitration rules of the Sub-Commission. The place of arbitration shall be Shanghai. The arbitration ruling shall be final and binding on the two Parties, and the losing Party shall compensate the winning Party for the arbitration cost and attorney’s fee.3

After Jiangsu sent a draft of the July MOU to Angle World, the parties allegedly met in person in China to continue negotiations. On July 19, 2018, Jiangsu emailed Angle World an amended version of the July MOU with a revised payment schedule. Angle World’s president, Biao Wang (“Wang”), responded with the following email:

It has not been written in accordance with our negotiation. It has exceeded the scope of my capacity in terms of negotiating with both parties. Following the legal procedure, once Jason4 has provided a final response, we will not make further changes or accept any amendment suggestions.5

3 SAppx91–92. 4 “Jason” appears to be Angle World’s Chief Operating Officer, Jason Pyon. 5 SAppx240. Angle World has moved to supplement the appellate record with an affidavit by Wang that, due to a technical filing issue, was not available to the District Court at

5 What happened next is not entirely clear. A Jiangsu representative initially attested that the parties held another in- person meeting, that Wang signed a copy of the July MOU, and that Jiangsu then sent a copy of the signed agreement to Angle World via courier service. However, Jiangsu has since conceded before the District Court and on appeal that Angle World never signed the July MOU. The parties exchanged emails on July 26 and 27, 2018 indicating that they had agreed to a payment schedule. Yet, these emails do not reference the July MOU or any other prior agreement. In subsequent emails between the parties in August and September 2018, Jiangsu repeatedly asked Angle World to forward the “signed agreement.” Angle World never acknowledged these requests.

Angle World states that from July to September 2018, it understood that the June MOU remained in effect, as modified by the later agreed-upon payment schedule. Nonetheless, Angle World ultimately made only two of the six scheduled payments to Jiangsu.6

the time of its decision. Dkt. 22. As we find that inclusion of Wang’s affidavit would not affect our disposition of this appeal, Angle World’s motion to supplement is denied as moot. Angle World may present Wang’s affidavit to the District Court upon remand in accordance with this Court’s instructions below. 6 Angle World claims that it ceased payments upon discovering that Jiangsu had breached the distribution agreement between the parties.

6 B. The Chinese Arbitration

In May 2019, Jiangsu initiated arbitration against Angle World before the China International Economic and Trade Arbitration Commission (“CIETAC”). Angle World objected to CIETAC’s jurisdiction over the dispute, and the matter was referred to the Beijing Fourth Intermediate People’s Court (the “Chinese Court”) to determine arbitrability. The Chinese Court found that the July MOU, and the arbitration clause contained therein, were enforceable under Chinese law because, among other things, “the parties entered into or modified the contracts by email during the course of long-term business,” and “the [July MOU] was an adjustment and supplement to the [June MOU].”7

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