Welcome to the September 2006 issue of the International Litigation and Arbitration Newsletter. This newsletter is an electronic bi-monthly publication distributed by Baker & McKenzie's North American Litigation Practice Group that provides summaries of recent decisions and other matters of interest in the area of international litigation and arbitration.

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Regards,

David Zaslowsky
Co-Editor

Grant Hanessian
Co-Editor

Article

There is a perception by some outside the United States that, under the "manifest disregard" standard, U.S. courts regularly review the merits of arbitration awards. In this month's article, we take a closer look at this judicially created doctrine for vacating awards. The article was written by Lawrence W. Newman and David Zaslowsky of our New York office.

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Case Summaries

Act of State Doctrine. The Helms-Burton Act does not affect the application of the act of state doctrine to claims not brought under that act.
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Alien Tort Claims Act. Ninth Circuit reverses district court and holds that the US courts have jurisdiction over a claim under the ATCA.
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Anti-Suit Injunction. Forum Selection Clauses. Ninth Circuit sets standards for issuance of "antisuit" injunctions and holds enforcement of forum selection clauses outweighs notions of comity.
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Anti-Suit Injunction. District Court grants anti-suit injunction in connection with dispute arising from contract with choice of New York forum clause.
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Arbitrability. Where parties fail to specify that a law other than the Federal Arbitration Act will apply to the issue of arbitrability, the Act will apply and federal law will govern.
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Arbitration by Non-parties. Removal. District Court holds there was removal jurisdiction because the case fell under the New York Convention and that a non-party could compel arbitration under agency principles.
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Arbitration. Personal Jurisdiction. Post-arbitration personal jurisdiction analysis under state long-arm statute is not limited to facts determined by arbitrators but instead must consider whether underlying claim arose from contract that provided for arbitration.
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Choice of Law. District Court applied Israeli law in a dispute over stolen property, as Israel was the place where the stolen property was sold and purchased.
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Comity. Forum Non Conveniens. Paris Convention. District Court holds that simultaneous Chinese proceedings are no bar to U.S. proceedings, and that the Paris Convention does not extend the Lanham Act to include misappropriation of trade secrets.
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Diversity. District Court holds that a foreign corporation is a citizen of both its state of incorporation and principal place of business, resulting in dismissal for lack of diversity jurisdiction.
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Foreign Sovereign Immunities Act. Commercial Activity Exception. Fifth Circuit determines that the actions of a foreign state's agent can subject the foreign state to a U.S. court's jurisdiction under the FSIA's commercial activity exception only if the agent is acting with actual authority.
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Foreign Sovereign Immunities Act. District Court holds that (1) the clearing of redemption warrants through a New York branch does not constitute a direct effect in the United States sufficient to invoke the commercial activity exception; and (2) the agreement of an instrumentality of a foreign state to a non-exclusive forum selection clause does not constitute a waiver of sovereign immunity.    
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Foreign Sovereign Immunities Act. Indispensable Parties. The Philippines was a "needed" party under Rule 19 of the Federal Rules of Civil Procedure, but was not an indispensable party to an action where it had no practical likelihood of enforcing its rights.    
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Foreign Sovereign Immunities Act. Relief from Judgment or Order. D.C. Circuit reverses district court's denial of Rule 60(b) motion on ground that Congo's failure to timely respond was the result of "excusable neglect."    
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Forum Non Conveniens. Sixth Circuit vacates district court's order dismissing Plaintiff U.S. citizen's claims on grounds of forum non conveniens.     
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New York Convention. Fifth Circuit affirms holding that removal jurisdiction was proper.    
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Personal Jurisdiction. Venue. District Court holds that it has no personal jurisdiction but grants request for transfer of venue.     
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Securities Exchange Act. Foreign Issuers. Second Circuit Affirms Anti-Fraud Exemption of Securities Exchange Act of 1934 for Foreign Private Issuers.    
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Service of Process. Court permits service of process by publication on a defendant in Pakistan.

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