F.D. Import & Export Corp. v. M/V REEFER SUN
A New York corporation, F.D. Import & Export Corp., brought an admiralty and maritime action seeking damages for a shipment of bananas from Ecuador to Ukraine. F.D. Import alleged breach of a Purchase Agreement by suppliers and breach of Charter Party and Bills of Lading by carriers, resulting in damaged cargo. Defendants moved to dismiss the action or stay proceedings pending arbitration, citing clauses in the Charter Party and Bills of Lading. The court found that F.D. Import was bound by a broad arbitration clause in the Charter Party and Bills of Lading through constructive notice, leading to the dismissal of claims against carrier defendants for arbitration. However, claims against supplier defendants, related to the condition of the fruit before shipment and governed by the Purchase Agreement, were not subject to arbitration, and the court denied the motion to stay proceedings for these claims, allowing them to continue in litigation.