Trina Solar US, Inc. v. JRC-Services LLC

229 F. Supp. 3d 176, 2017 U.S. Dist. LEXIS 6134, 2017 WL 187476
CourtDistrict Court, S.D. New York
DecidedJanuary 17, 2017
Docket16-CV-2869 (VEC)
StatusPublished

This text of 229 F. Supp. 3d 176 (Trina Solar US, Inc. v. JRC-Services LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trina Solar US, Inc. v. JRC-Services LLC, 229 F. Supp. 3d 176, 2017 U.S. Dist. LEXIS 6134, 2017 WL 187476 (S.D.N.Y. 2017).

Opinion

MEMORANDUM OPINION & ORDER

VALERIE CAPRONI, United States District Judge:

Petitioner Trina Solar US, Inc. (“Trina”) brings this action against Respondents JRC-Services LLC (“JRC”) and Jasmin Solar Pty Ltd. (“Jasmin”) to confirm an arbitration award pursuant to which Respondents were ordered to pay Petitioner approximately $1.3 million. Respondents have moved to vacate the arbitration award. For the reasons discussed below, the Court denies Respondents’ motions to vacate and confirms the arbitration award.

BACKGROUND

Trina, a California company, manufactures and sells solar panels and is a wholly-owned subsidiary of Trina Solar Ltd., a Chinese Company. JRC Mem. 5 (Dkt. 10); Trina Jasmin Opp. 2 (Dkt. 20).1 Jasmin is a private Australian company that sells and installs solar panels in Australia. Jasmin Mem. 2 (Dkt. 16). JRC, a private administrative and marketing company located in Nevada, purchased solar panels from Trina. JRC Mem. 5-7; Jasmin Mem. 2-7; Trina Jasmin Opp. 2-5. The parties dispute whether JRC was acting as Jasmin’s agent when it did so.

There is no dispute, however, that JRC became an agent for Jasmin in May 2012 in order to help Jasmin buy solar panels for its Australian customers. See Mazzola Decl. Ex. C Tr. 463:23-464:13, 568:21-569:11 (Dkt. 18-3); id. Ex. D Tr. 631:4-11 (Dkt. 18-^4). Richard Carson was JRC’s CEO and owner. Id. Ex. C Tr. 568:18-20. Matthew Starr, Jasmin’s managing partner, provided Carson with a Jasmin email address, and Carson used that email address and a Jasmin signature block in his communications with Trina. Id. Ex. C Tr. 458:8-22, 461:12-463:8, 546:20-23; see e.g., id. Ex. I (Dkt. 18-9). In August 2012, Carson executed a document entitled “Arrangement of rights and obligations” that was provided to Trina.2 Malone Decl. Ex. 5 (Dkt. 11-5). That document provided, in part:

We, Jasmin Solar, hereby certify that JRC-Services LLC, 2301 Plaza Del Grande, Las Vegas, NV 89102, will act as our agent for dealing with all the business between our company and Trina Solar.
We authorize JRC-Services LLC as our agent, to purchase solar modules products for our company from Trina Solar. JRC-Services LLC is the agent of Jasmin Solar, all their rights and obligations to sign any agreement with [181]*181Trina solarfsic] is authorized by our company.

Id. In that same document, Jasmin guaranteed payments by JRC and stated that the document wás valid from July 30, 2012, through July 30, 2015. Id.

Jasmin remained intimately involved throughout the relevant negotiations with Trina. While Jasmin and JRC negotiated with Trina for the solar panels, Carson and Starr edited drafts of the contract under negotiation. Mazzola Decl. Ex. C Tr. 545:3-8, 546:24-547:22. Trina’s main negotiating representative generally copied both Starr and Carson on relevant emails. Id. Ex. C Tr. 540:22-541:19, 546:24-547:20. It was clear during the negotiations that the solar panels JRC and Jasmin sought to purchase from Trina were intended for Jasmin’s use and that the panels would be tailored to Jasmin’s needs. See generally id. Exs. E (Dkt. 18-5), H (Dkt. 18-8), J (Dkt. 18-10). Toward the end of the negotiating period, Starr instructed Trina that it should inform him of any major issues immediately. Id. Ex. H, at 1.

In November 2012, JRC executed a written contract with Trina to purchase solar panels (“FV Module Sales Contract” or “Contract”). JRC Mem. 7 (citing Malone Decl. Ex. 4 (Dkt. 11-4)). Jasmin was not a signatory, and the August 2012 “Arrangement of rights and obligations” was not explicitly incorporated into the Contract. See generally Malone Decl. Ex. 4. The Contract only referenced Jasmin once: it provided that concurrently with the effective date of the Contract, Jasmin, as JRC’s parent, would guarantee payment for shipments delivered pursuant to purchase orders issued by JRC. Id. Ex. 4 ¶ 5.5.1.3 The parties dispute whether it was Trina or Jasmin who asked JRC to execute the PV Module Sales Contract instead of Jasmin. Jasmin Mem. 4; Trina Jasmin Opp. 4.4 [182]*182Although JRC alone executed the PV Module Sales Contract, Jasmin acted as though it was a party to the Contract: purchase orders and sales invoices included Jasmin’s address; Starr and Carson each signed various purchase orders; Jas-min received the solar panels directly from Trina in Australia; Jasmin received and installed the panels; and at least at one point in 2013, Jasmin told Trina that it intended to pay the invoices. Mazzola Decl. Ex. C Tr. 449:21-450:4; id. Ex. D Tr. 632:6-25, 872:2-12, 873:4-13; id. Exs. I, M (Dkt. 18-13), N (Dkt. 18-14).5 Moreover, Starr himself urgently asked Trina to deliver the panels in a timely manner. Id. Ex. I, at 7-9; Malone Decl. Ex. 32 (Dkt. 11-32). Separately, Jasmin allegedly orally agreed with JRC that once it began to receive revenue from customers for whom it had installed panels, it would pay JRC. Mazzola Decl. Ex. D Tr. 874:5-17.

According to JRC and Jasmin, Trina did not deliver the correct model of solar panels, and the panels that were delivered were late and defective. Malone Decl. Ex. 23, at ¶¶ 33-39; id. Ex. 25, at ¶¶ 55-56, 59-61. JRC refused to pay Trina asserting that Trina had knowingly falsely represented its ability to deliver the desired panels on the required schedule. JRC Mem. 8; Trina JRC Opp. 4 (Dkt. 19); Trina Jasmin Opp. 5.

On May 16, 2014, Trina initiated arbitration against JRC and Jasmin pursuant to the arbitration clause in the PV Module Sales Contract. JRC Mem. 8 (citing Malone Decl. Exs. 2 (Dkt. 11-2), 3 (Dkt. 11-3)). Jasmin moved to dismiss for lack of jurisdiction asserting that it was not a party to the PV Module Sales Contract. Malone Decl. Ex. 11 (Dkt. 11-11). The Tribunal denied Jasmin’s motion. Id. Ex. 16 (Dkt. 11-16). In order to maintain its objection, Jasmin did not participate in the arbitration. Malone Decl. ¶¶ 22, 25, 26 (Dkt. 11).

In the arbitration, Trina claimed it was owed $1,826,264 plus interest at an annual rate of 12%. Malone Decl. Ex. 1, at 3 ¶ 11 (Dkt. 11-1). JRC argued for $933,387 in reductions to any amount that would be awarded and either no interest or interest at the rate of 0.1% (comparable to the lessor statutory rate in 28 U.S.C. § 1961(a), which governs post judgment interest). Id. Ex. 40, at 36-39, 45-53 (Dkt. 11-40). Following a three-day hearing, the Tribunal issued its final award on January 22, 2016, finding JRC and Jasmin jointly and severally liable for $1,305,131 plus interest in accordance with 28 U.S.C. § 1961(a). Malone Decl. Ex. 1, at 4 ¶ 1. As agreed by the parties, the Tribunal did not include reasons for its award. Id. at 3 ¶ 10. JRC and Jasmin have filed separate motions to vacate the arbitration award. Dkts. 9,14.

DISCUSSION

I. Legal Standard

Petitioner seeks to confirm the award and Respondents seek to vacate the [183]

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Cite This Page — Counsel Stack

Bluebook (online)
229 F. Supp. 3d 176, 2017 U.S. Dist. LEXIS 6134, 2017 WL 187476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trina-solar-us-inc-v-jrc-services-llc-nysd-2017.