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Broad foreign arbitration clauses are enforceable in the US
The US Court of Appeals for the 11th Circuit (one of several US regional federal courts of appeal) in a recent decision involving a commission claim made pursuant to a mega-yacht sales contract has reinforced the enforceability of broad arbitration clauses in international contracts subject to the New York Arbitration Convention and the applicability of such arbitration clauses to non-signatories in certain circumstances under the US doctrine of collateral estoppel. The Court rejected efforts by the claimants to avoid the arbitration clause by framing their claims in tort rather than contract. The greater familiarity of the US federal courts versus state courts in matters concerning arbitration makes it advisable when possible to remove such claims if filed first in a state court. This decision upholds the removability of claims subject to the New York Convention. The decision is styled Northrop and Johnson Yacht-Ship ....

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