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On April 7, 2004, a federal judge in the Eastern District Court of Pennsylvania handed DeHeng Chen Chan, LLC (“DCC”) a major victory seeking enforcement of a foreign arbitral award, pursuant to the New York Convention. DCC of-counsel, Mr. Matthew Gruskin, DCC filed a petition to confirm an arbitral award, awarded to its client, Xiamen International Trade Group Corp., Ltd. (“Xiamen Group”) by The China International Economic and Trade Arbitration Commission (“CIETAC”). Federal District Judge Charles R. Weiner granted the motion to confirm the award in all respects.
In October 2000, Xiamen Group entered into a contract of sale with East and West Inc. (East & West), a Pennsylvanian corporation. According to contract terms, disputes would be submitted to CIETAC. Xiamen Group fulfilled its terms by shipping goods to East and West in a timely manner, while the latter breached the contract by refusing to pay. On August 20, 2001, after numerous attempts to collect, Xiamen Group submitted the disputes to CIETAC. East & West’s reason for non-payment were that the customer, who intended on purchasing the goods, had declared bankruptcy in the United States. Although, East & West replied to the arbitration notice, it failed to appear in court or appoint an arbitrator as required. Consequently, in April 2002, CIETAC found in favor of Xiamen Group by stating that Xiamen Group had entered into a contract with East & West, and not with its customer. Therefore, the customer’s bankruptcy should not affect East & West’s contractual obligation to pay Xiamen Group.
The complexities of international litigation can be a hurdle for many corporations that enter into international contracts. Xiamen Group’s attempt to successfully enforce the arbitral award proved this. Initially Xiamen Group retained a local law office in Pennsylvania who had little experience in the area of international laws and regulations governing foreign arbitrations. The petition was erroneously filed in a PA state court and was dismissed by the court. Xiamen Group eventually retained DCC as counsel. As an international law firm, specialized in international trade litigation, DCC was well equipped to handle Xiamen Group’s case. Mr. Xiaomin Chen, managing partner of the firm and Mr. Matthew Gruskin, a seasoned contract litigation attorney, spearheaded and succeeded in this cross-border arbitration case.
DeHeng Chen Chan, LLC is an international law firm specialized in international trade law, customs, corporate, intellectual property, commercial litigation, banking and finance and commercial real estate. It is part of DeHeng Law Offices based in Beijing which has over 350 attorneys with branch offices in major cities in China and worldwide. DeHeng Chen Chan, LLC is located in downtown Manhattan with branch offices in Queens, NY and NJ. For more information, please visit our website www.dcclaw.com or call 212-608-6500.
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