After affirming, in short order, the district court’s confirmation of the arbitral award, the Second Circuit holds that a party who prevails in an arbitration is not entitled to recoup the fees and costs it incurred in seeking to confirm the arbitral award. Zurich American Insurance Co. v. Team Tankers A.S., No. 14-4036-cv, January 28, 2016.
Petitioner-Appellant Vinmar (the “shipper”) chartered a ship from Respondent-Appellee Team Tankers ( the “carrier”) to move a chemical called ACN from Texas to South Korea. ACN is a raw material that is most valuable in its colorless form. If ACN comes into contact with other chemicals, it can ‘yellow’ which reduces its value. When ACN arrived in South Korea it was stored in on-shore tanks; six weeks later, it had yellowed. The shipper claimed that the vessel had been contaminated with a chemical that caused ACN to yellow. [Read more…]