Encyclopedia Britannica prevails in appeal denying enforcement of arbitral award
Clients Encyclopedia Britannica, Inc.
Encyclopaedia Universalis, S.A. (EUSA) sought to confirm an award of approximately 3 million Euros rendered by an arbitration panel convened in Luxembourg for alleged breach of a licensing agreement that EUSA entered into with Jones Day client Encyclopaedia Britannica. Britannica did not participate in the arbitration proceedings, because EUSA did not adhere to an agreed-upon procedure for appointing the third arbitrator. After the award was rendered in Britannica’s absence, EUSA sought to confirm it pursuant to an international treaty, the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The district court refused to confirm the award on the Convention ground that the "composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties." EUSA appealed to the Second Circuit, which held that the district court had properly refused to confirm the arbitral award.
Encyclopaedia Universalis S.A. v. Encyclopaedia Britannica, Inc., No. 03 Civ. 4363 SAS, 2003 (S.D.N.Y. 2003), 403 F.3d 85 (2d Cir. 2005)