Commercial Litigation and Arbitration

New York Convention — Authority of Federal Courts to Grant Relief in Aid of International Arbitration

There is a split of authority as to whether a federal court possesses the authority to entertain a request for an order pendente lite sought by a party to an international arbitration when the arbitral tribunal has the power to grant similar relief. The disparate authorities are collected and analyzed in District Judge Mark R. Kravitz’s thoughtful opinion in Bahrain Telecommunications Co. v. DiscoveryTel, Inc., 476 F. Supp. 2d 176 (D. Conn. 2007). Applying Second Circuit precedent, Judge Kravitz held that the federal courts have jurisdiction to entertain a motion for prejudgment remedy (attachment) by a party to an international arbitration currently pending in the London Court of International Arbitration, whose rules, the Court noted, expressly contemplate that parties to pending arbitrations may seek provisional remedies from courts (LCIA Article 25.3).

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