Baker Hughes Saudi Arabia Co Ltd v Dynamic Industries Inc - United States District Court Eastern District of Louisiana Civil Action No 2-23-1396 - Order and Reasons - 6 November 2023

Country
Year

2023

Summary

Order and Reasons

The Court has before it Defendants Dynamic Industries, Inc., Dynamic Industries International, LLC, and Dynamic Industries International Holdings, Inc.'s (collectively "Defendants") Motion to Dismiss for Forum Non Conveniens or to Compel Arbitration, R. Doc. 8. Plaintiff Baker Hughes Saudi Arabia Company Ltd. opposes Defendants' motion, R. Doc. 11, and both Defendants and Plaintiff have submitted reply memoranda, R. Docs. 15; 18. Having considered the parties' briefing and the applicable law and facts, the Court will DENY Defendants' motion.

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Background

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Here, Defendants assert the Contract requires any dispute between the parties, if not otherwise resolved, to be "referred by either Party to and finally resolved by arbitration under the Arbitration Rules of the DIFC LCIA." R. Doc. 8 at 7 (quoting R. Doc. 8-2 at 94).

The Dubai International Financial Center London Court of International Arbitration ("DIFC LCIA") was an arbitration center located in Dubai that applied international rules for arbitration based on those used in the London Court of Arbitration. See R. Doc. 11-2 at 10. However, in 2021, the government of Dubai issued a decree abolishing the DIFC LCIA and replacing it with the Dubai International Arbitration Center ("DIAC"). Plaintiff thus argues that the Contract's arbitration provision is unenforceable because the selected forum, the DIFC LCIA, no longer exists. R. Doc. 11 at 7-12.

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