Trithorn Bulk A/S v. Duron Capital LLC

CourtDistrict Court, S.D. New York
DecidedJune 23, 2023
Docket1:22-cv-09628
StatusUnknown

This text of Trithorn Bulk A/S v. Duron Capital LLC (Trithorn Bulk A/S v. Duron Capital 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
Trithorn Bulk A/S v. Duron Capital LLC, (S.D.N.Y. 2023).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------- X : TRITHORN BULK A/S, : : Petitioner, : 22 Civ. 9628 (JPC) : -v- : ORDER : DURON CAPITAL LLC, : : Respondent. : : ---------------------------------------------------------------------- X

JOHN P. CRONAN, United States District Judge: Petitioner Trithorn Bulk A/S (“Trithorn”) has petitioned to confirm an arbitration award (the “Award”) issued against Respondent Duron Capital LLC (“Duron”). Duron has not opposed the Petition or otherwise appeared in this action. As discussed below, none of the grounds for refusing to confirm an arbitration award articulated in the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the “Convention”) are present here. Further, Duron has not moved to vacate the Award, let alone established that any of the grounds for vacatur under the Federal Arbitration Act (“FAA”) apply. The unopposed Petition therefore is granted. I. Background A. Facts1 Trithorn brings this action to confirm and enforce the Award under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 21 U.S.T. 2517, 330 U.N.T.S. 38 (June 10, 1958), incorporated by Chapter 2 of the FAA, 9 U.S.C. §§ 201-208, and under the FAA, id.

1 These facts are drawn from the Petition, which is unopposed, and from the supporting documentation filed as exhibits to the Declaration of Patrick F. Lennon, see Dkt. 10. § 1 et seq. Dkt. 1 (“Petition”) ¶ 1. Trithorn is a foreign business entity with a business address in Copenhagen, Denmark, id. ¶ 2, and Duron is a domestic business entity with a principal address in Miami, Florida, id. ¶ 3. The Award was issued in New York City, id. ¶ 1, following a demand for arbitration issued pursuant to a voyage charter party contract, id. ¶ 18, which was entered into

on October 28, 2020 between Duron as Charterer and Trithorn as Disponent Owner, id. ¶ 7. See generally Dkt. 10-1 (the “Charter”).2 Under the Charter, Trithorn, which owned the ocean-going motor vessel LIPSI, Petition ¶ 2, agreed to load wheat in or around San Lorenzo, Argentina for carriage and discharge at Puerto Cabello, Venezuela. Id. ¶ 7; Charter at 5. The Charter established that the laycan, the “[r]ange of dates within [which] the hire contract must start,” Mar. Admin., U.S. Dep’t of Transp., Glossary of Shipping Terms 62 (2008), available at https://www.maritime.dot.gov/sites/marad.dot.gov/files/docs/resources/3686/glossaryfinal.pdf (last visited June 23, 2023), would last from November 13, 2022 to November 20, 2022, Petition ¶ 7; Charter at 5, and that the laytime, which is the “period of time allowed for unloading and loading,” Thomas J. Schoenbaum, Schoenbaum’s Admiralty and Maritime Law § 11:15 (6th ed.

2018), would begin at 8:00 a.m. on the next working day following the tendering and acceptance of a Notice of Readiness or NOR, Charter at 5, 24; see also Petition ¶ 10. A Notice of Readiness, in turn, indicates that “the ship is ready to load.” Mar. Admin., supra, at 73. On November 10, 2020, the LIPSI arrived in Argentina and proceeded to the Rosario Roads anchorage, where it was to wait until shipment permits were issued and Duron communicated that the cargo was ready to be loaded at a designated terminal. Petition ¶ 9. On Friday, November 13, 2020, the start of laycan, the LIPSI tendered its Notice of Readiness. Id. ¶ 10. Pursuant to the

2 Because the document at Docket Number 10-1 contains multiple parts that are each separately paginated, pincites refer to the ECF-generated page numbers rather than to the page numbers displayed on the document itself. Charter, laytime began to run at 8:00 a.m. on the following Monday, November 16, 2020. Id. Because the required shipment permits had not been issued, however, the LIPSI remained at Rosario Roads rather than proceeding to a terminal to load the cargo. Id. ¶ 11. Upon the expiration of laycan on November 20, 2020, the LIPSI was ordered to move from Rosario Roads to Villa

Constitucion Roads, where it arrived on November 21, 2020. Id. ¶ 12. On November 28, 2020, the required permits were issued, and the LIPSI travelled to the designated terminal to load the cargo. Id. ¶ 14. Loading occurred from November 30, 2020 to December 5, 2020. Id. ¶ 15. Due to these delays, Trithorn claimed $159,520.31 from Duron in demurrage, id. ¶ 16, which is “[a] penalty charge against shippers or consignees for delaying the carrier’s equipment or vessel,” Mar. Admin., supra, at 37. Duron, by contrast, blamed delays in loading the cargo on a union strike at the loading terminal. Petition ¶ 11. The Charter provided that “[a]ll disputes arising out of this contract shall be arbitrated at New York . . . and be subject to U.S. Law.” Charter at 17. After Duron refused to pay the claimed demurrage, Trithorn issued a demand for arbitration. Petition ¶¶ 17-18. The arbitrators were

Lucienne C. Bulow, Louis Epstein, and Louis P. Sheinbaum, the chair (collectively, the “Arbitrators”). Dkt. 10-2 (“Award”) at 2.3 The Arbitrators issued their unanimous Award in New York on October 3, 2022, in which they found that Duron owed demurrage of $158,278.12, pre- Award interest of $9,723.26, attorneys’ fees and costs of $48,517.12, and arbitrators’ fees of $20,000, amounting to a total of $236,518.50. Petition ¶ 19; Award at 22. The Award further provided that it “may be entered as a judgment in any court of competent jurisdiction.” Award at 23. As of the date of the Petition, Duron had not paid the amount the Arbitrators awarded to Trithorn. Petition ¶ 24.

3 Because the Award was not paginated, pincites refer to ECF-generated page numbers. B. Procedural History On November 10, 2022, Trithorn filed the Petition to confirm the Award. Dkt. 1. Trithorn initially attempted to serve the Petition on Duron pursuant to Rule 5(b)(1) of the Federal Rules of Civil Procedure by e-mailing it to Duron’s counsel in the underlying arbitration on or around

November 14, 2022. Dkt. 8. On December 19, 2022, the Court issued an Order holding that such service was inadequate under the FAA, 9 U.S.C. § 9, because Duron is a resident of Florida, and because a petition to confirm an arbitration award must be served under Rule 4 of the Federal Rules of Civil Procedure when the respondent does not live within the judicial district in which the petition was filed. Dkt. 13. Subsequently, on December 22, 2022, pursuant to section 48.062 of the Florida Statutes, Trithorn served Duron via its registered agent, United States Corporation Agents, Inc., which was designated pursuant to section 605.0113 of the Florida Statutes. See Dkts. 14, 23; see also Div. of Corps., Fla. Dep’t of State, Duron Capital LLC, https://search.sunbiz.org/Inquiry/CorporationSearch/SearchResultDetail?inquirytype=EntityNam e&directionType=Initial&searchNameOrder=DURONCAPITAL%20L200000611870&aggregat

eId=flal-l20000061187-6163c513-67e4-429c-bd7d-2a9a65a5d7bf&searchTerm=duron%20capit al&listNameOrder=DURONCAPITAL%20L200000611870 (last visited June 23, 2023) (identifying registered agent for Duron Capital). On February 7, 2023, the Court ordered Duron to appear and respond to the Petition by March 13, 2023. Dkt. 20. Duron has not submitted a response to the Petition or otherwise appeared in this action. II. Discussion A. The Arbitration Award 1.

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