Court settles Sinochem jurisdiction case |
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Mon, 05 Mar 2007 17:58
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WASHINGTON (AP) - The Supreme Court on Monday sided with a Chinese company that wanted a dispute with a Malaysian corporation heard in a court in China rather than in the United States.The justices ruled unanimously that a U.S. judge can dismiss a lawsuit for the sake of convenience without first deciding whether the U.S. court has jurisdiction over the case.The significant part of the dispute is 'best left for determination by the Chinese Courts' and continuing the dispute in the United States does not serve judicial economy, wrote Justice Ruth Bader Ginsburg.Sinochem International Co. Ltd. complained in Chinese Admiralty Court that Malaysia International Shipping Corp. had backdated a bill of lading for steel coils loaded at a port in Fairless Hills, Pa., and taken to Huangpu, China.The shipping company sued in federal court in Philadelphia, saying it had suffered damages due to Sinochem's representations about Malaysia International and the seizure of the ship when it got to China.A U.S. District Court judge dismissed the case, saying China is the best forum for the dispute involving two non-American companies. A federal appeals court said the lower court should have first determined whether it had jurisdiction over the case.The contract between Sinochem and the seller, an American company, conditioned payment on a valid bill of lading showing the cargo had been loaded by April 30, 2003. The American company got its money. Sinochem subsequently alleged the ship wasn't loaded until May 1.Malaysia International says the precipitating factor for Sinochem's legal action was a sharp drop in the price of hot rolled steel coils in the spring of 2003 after Sinochem contracted to buy the coils.Sinochem International is partially owned by Sinochem Corp., a state-owned enterprise.The case is Sinochem v. Malaysia International, 06-102.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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