Mediso Medical Equipment Developing and Services, Ltd. v. Bioscan, Inc.
75 F. Supp. 3d 359
D.D.C.2014Background
- Petitioner Mediso seeks to confirm an arbitral award issued by the Arbitration Court attached to the Hungarian Chamber of Commerce and Industry under NY Convention and FAA.
- Parties: Mediso and Bioscan, Inc. entered into a 2005 Collaboration/Original Equipment Manufacturer Agreement and an MOU appointing Bioscan as exclusive distributor.
- Arbitration clause required disputes to be settled by the Hungarian Arbitration Court; Bioscan dissolved and did not participate in hearings.
- Arbitral Award ordered Bioscan to pay several monetary amounts; Respondent notified the arbitration court of its dissolution and did not defend.
- Mediso filed for confirmation of the award in this Court; Bioscan was properly served but failed to appear or plead; default entered.
- Court sua sponte considers confirmation standards and post-judgment interest on portions of the Arbitral Award not already accruing interest
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitral award is confirmable under the NY Convention/FAA | Mediso argues FAA/NY Convention requires confirmation; no defenses shown | Bioscan did not appear or respond to challenge the award | Award confirmed |
| Whether post-judgment interest is warranted on non-interesting portions of the award | Interest should follow §1961 like other judgments | Not opposed, but no direct rebuttal provided | Post-judgment interest awarded at 5% per annum where applicable |
Key Cases Cited
- Belize Soc. Dev., Ltd. v. Gov't of Belize, 668 F.3d 724 (D.C. Cir. 2012) (emphatic federal policy in favor of arbitral dispute resolution; limited discretion to refuse enforcement)
- Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614 (U.S. 1985) (FAA/NY Convention enforcement framework; strong policy in favor of enforcement)
- Int'l Painters and Allied Trades Indus. Pension Fund v. Auxier Drywall, LLC, 531 F. Supp. 2d 56 (D.D.C. 2008) (default judgment standards support enforcement when party unresponsive)
- Tricon Energy, Ltd. v. Vinmar Int’l, Ltd., 718 F.3d 448 (5th Cir. 2013) (judgment confirming an arbitration award is subject to §1961)