![]() ![]() Before receiving Layton's letter of objection, however, Maryse Welter, the Presiding Judge of the Tribunal, appointed Nicolas Decker, a Luxembourg attorney, as the third arbitrator. Two weeks later, Danziger made Layton aware of his letter to the Tribunal, and Layton immediately had counsel in Luxembourg inform the Tribunal that he intended to object to Danziger's request for a third arbitrator. Danziger also informed the Tribunal that the parties had agreed for the third arbitrator to be drawn from a list maintained by the British Chamber of Commerce (“Chamber”) he noted, however, that he had recently learned that the Chamber no longer maintained such a list. He stated that he and Layton had been unable to agree on a third arbitrator and requested that the Tribunal appoint one pursuant to the License Agreement. In March 1999, Danziger wrote to the President of the Tribunal of Commerce of Luxembourg (“Tribunal”) asking the Tribunal to name a third arbitrator. ![]() During this period, they discussed the scope of the arbitration and the arbitral procedures to be followed, but not the merits of the underlying claim or the identity of the third arbitrator. Layton and Danziger communicated by fax and telephone between September 1998 and December 1998. In July 1998, EB appointed Robert Layton, a New York attorney, to serve as its arbitrator. After an initial dispute over who would serve as EUSA's arbitrator, in May 1998, EUSA sent a letter to EB describing its claim and naming as its arbitrator Raymond Danziger, an accountant residing in Paris. The parties disagreed about EB's obligation to continue such payments and were unable to resolve the matter. In October 1995, EB stopped making royalty payments to EUSA under the License Agreement. ![]() The License Agreement required arbitration of all disputes between the parties and explicitly incorporated the arbitration procedures set out in the Two Party Agreement. They agreed to form a new entity, Encyclopaedia Universalis France, which would have certain rights to the French-language version of the encyclopedia. On the same day, EB entered into a “Two Party Agreement” with Club Français du Livre (“CFL”), a French corporation. In exchange, EB agreed to pay royalties to EUSA based on sales of the non-French editions. In 1966, EUSA and EB entered into a Literary Property License Agreement (“License Agreement”), granting EB the right to translate, produce, distribute, and license in any language other than French the contents of a French reference work, Encyclopaedia Universalis. Both parties are in the business of publishing and distributing reference materials and other learning products. EB is a Delaware corporation, with its principal place of business in Illinois. EUSA is a societé anonyme (analogous to a corporation) organized under the laws of Luxembourg. For the reasons that follow, we affirm as to the District Court's holding under Article V of the New York Convention, reverse as to the ruling that the arbitrators “exceeded their powers,” and vacate with respect to the District Court's order of a supplemental remedy. (“EB”) to enforce the award of an arbitral board in Luxembourg. EUSA brought suit against Encyclopaedia Britannica, Inc. (“EUSA”) appeals from a judgment of the United States District Court for the Southern District of New York (Scheindlin, J.) denying its motion to confirm an arbitration award under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, June 10, 1958, 21 U.S.T. Sherman, on the brief) for Defendant-Appellee Encyclopaedia Britannica, Inc.Įncyclopaedia Universalis S.A. Morin, on the brief), for Plaintiff-Appellant Encyclopaedia Universalis S.A. Marlborough, Wormser, Kiely, Galef & Jacobs LLP, New York, N.Y. Decided: March 31, 2005īefore: MESKILL, SACK, and B.D. ENCYCLOPAEDIA BRITANNICA, INC., Defendant-Appellee. United States Court of Appeals,Second Circuit.ĮNCYCLOPAEDIA UNIVERSALIS S.A., Plaintiff-Appellant, v. ![]()
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