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ARTICLE · 28 SEPTEMBER 2018

Eleventh Circuit Reverses Order Compelling Arbitration Between Non-Signatories

The Court remanded for further proceedings before the Alabama federal district court.

United StatesInsurance

Plaintiff Outokumpu Stainless USA, LLC ("Outokumpu") contracted with F.L. Industries, Inc. ""FLI"), a German company, to provide cold rolling mills ("CRMs"), which are used in the production of certain steel products. FLI later contracted with GE Energy Conversion France SAS ("GE Energy"). Both contracts contained arbitration agreements.

Outokumpu and GE Energy became involved in a dispute over failed CRMs. Outokumpu filed suit in Alabama state court and GE Energy removed to Alabama federal court, and moved to compel arbitration under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards ("New York Convention"). Outokumpu sought to remand to state court. The District Court denied remand and granted GE Energy's motion to compel arbitration. Outokumpu appealed.

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