Collection of Evidence in the U.S. Pursuant to 28 U.S.C. Section 1782 for Use in Foreign Private Arbitrations

Mainbrace | June 2017 (No. 3)

W. Cameron Beard and Lauren B. Wilgus

Critical evidence, needed for the resolution of a dispute abroad, may be located in the United States. A key witness may reside in the United States, or important financial or other documentary evidence may be found only in this country. As we have discussed in previous articles,1 section 1782 of the United States Code (“section 1782”) offers a powerful tool for the collection of evidence in the United States for use in foreign legal proceedings. The statute allows either a foreign tribunal or a party to foreign proceedings to apply directly to a U.S. federal court for an order directing that a witness be examined or that evidence be disclosed for purposes of a foreign legal proceeding. The procedure is highly efficient; by taking advantage of section 1782, foreign litigants can often avoid and bypass the unwieldy and time-consuming requirements of letters rogatory or requests for evidence collection under the Hague Convention on the Collection of Evidence Abroad in Civil or Commercial Matters.

Continue reading “Collection of Evidence in the U.S. Pursuant to 28 U.S.C. Section 1782 for Use in Foreign Private Arbitrations”

Enforcement of Foreign Judgments and Foreign Arbitral Awards in the United States

Mainbrace | March 2017 (No. 2)

William R. Bennett and Lauren B. Wilgus

Our clients regularly seek our assistance in recovering foreign arbitral awards and foreign judgments from debtors and/or their alleged alter egos in the United States. Each case has its unique facts that dictate the level of effort that we must make to bring about a successful outcome. For example, obtaining a recovery from an alleged alter ego may require a Rule B attachment followed by significant factual discovery, while obtaining a recovery from a debtor with assets and business connections in the United States may require less effort. Regardless of the facts that may be unique to each matter, the basic framework to seek a recovery, discussed herein below, is the same.

The United States has been a signatory of the 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”) since 1970; however, it is not currently party to any international treaty for the recognition of foreign judgments. Unlike foreign arbitral awards, which are governed by the New York Convention, no treaty outlines the circumstances under which U.S. courts may recognize foreign judgments. In the United States, for instance, only the principle of comity, the common law, and individual states’ laws allow U.S. courts to recognize and enforce foreign judgments.

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Gulf Coast Update: Personal Jurisdiction Trend Continues to Favor the Defense

Mainbrace | March 2017 (No. 2)

David G. Meyer

Under U.S. law, personal jurisdiction is one of the fundamental aspects of a court’s ability to adjudicate a particular dispute, and it often plays a role in maritime cases, given the far-flung nature of the industry. In recent years, the trend in U.S. courts has been generally favorable to personal jurisdiction challenges. This is highlighted by two separate cases, Gulf Coast Int’l, L.L.C. v. The Research Corp. of the Univ. of Hawaii, 490 S.W.3d 577 (Tex. App.—Houston [1st Dist.] 2016, pet. denied), and Mitsui Sumimoto Insurance Co., Ltd. v. M/V DEFIANT, et al., civil action H-16-55 (S.D.Tex. Aug. 23, 2016) (Miller, G.), recently handled by Blank Rome’s Houston office in which dismissals were obtained for the Firm’s clients on the basis that the court in which the plaintiff had filed suit did not have personal jurisdiction over the companies being sued. Continue reading “Gulf Coast Update: Personal Jurisdiction Trend Continues to Favor the Defense”

Bridging the Gap: AMLC Launches Government Relations Initiative to Further Practice Area Understanding between Private and Government Counsel

Mainbrace | March 2017 (No. 2)

Sean T. Pribyl

The scenario is a familiar one to lawyers practicing in maritime and admiralty law—a frantic middle-of-thenight call, a shipboard emergency, and your client looking to you for answers in a high-stakes scenario that could amount to the beginning of a very bad day. It is in the critical moments that follow during which government and private counsel may come into contact with the other, and those moments may to some extent define the course of the investigation. Depending on the precise incident, private counsel may find themselves inundated with multiple federal or state agencies, dealing with a litany of acronyms and governmental procedures. On the other hand, government counsel may be called to interact directly with private counsel while not fully understanding the private attorney’s motivations in representing their client. Regardless of the incident, there is potential for a language and cultural barrier when parties interact while serving respective clients during a maritime investigation, and counsel are at a disadvantage if they have not taken initial steps to understand the other side’s driving factors and authoritative processes before the initial interaction.

Continue reading “Bridging the Gap: AMLC Launches Government Relations Initiative to Further Practice Area Understanding between Private and Government Counsel”

U.S. District Court Finds U.S. Coast Guard’s National Pollution Funds Center Acted Arbitrarily and Capriciously When Denying Oil Spill Claim

Jonathan K. Waldron, Jeanne M. Grasso, and Sean T. Pribyl

Action Item: In December 2016, the U.S. District Court for the District of Columbia found that the U.S. Coast Guard’s National Pollution Funds Center (“NPFC”) wrongfully denied a reimbursement claim by the Water Quality Insurance Syndicate (“WQIS”) for the costs of cleaning up an oil spill in Cook Inlet, Alaska in January 2009. This opinion provided a powerful finding that a federal agency acted arbitrarily and capriciously in taking final agency action under the Administrative Procedure Act (“APA”). The opinion puts federal agencies on notice that agency determinations must be supported by the factual record. Continue reading “U.S. District Court Finds U.S. Coast Guard’s National Pollution Funds Center Acted Arbitrarily and Capriciously When Denying Oil Spill Claim”

Maritime Cybersecurity: Protecting Passengers and Their Private Information in the Maritime Industry

Mainbrace | January 2017 (No. 1)

Kate B. Belmont

Cybersecurity has become a critical focus for all industries reliant on information technology (“IT”). Massive data breaches, cyber espionage, and hacking events sponsored by nation states around the globe occur with growing frequency. Continue reading “Maritime Cybersecurity: Protecting Passengers and Their Private Information in the Maritime Industry”

The Dual Threats of “Wrongful Arrest” and “Counter-Security” in U.S. Maritime Actions: Practical Considerations for the Foreign Litigant

Mainbrace | January 2017 (No. 1)

Jeremy A. Herchaft and Lauren B. Wilgus

Restraining maritime property ex parte within the district of a United States federal court represents a challenging and “high stakes” area of admiralty practice for the American maritime litigator. Given the significance of this unique type of litigation and its inevitable impact on maritime commerce, two preliminary questions are almost always asked by our foreign colleagues at the outset of conflict. First, once an arrest or attachment occurs, can the defendant respond with a wrongful arrest or attachment claim against the initiating plaintiff? Second, what is “counter-security,” and is it available in the United States to the defendant whose property has just been attached or seized? Both of these important questions will be addressed below.

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What the Heck Is “Privity”? Is the Limitation of Liability Act Still Relevant?

Mainbrace | September 2016 (No. 4)

Jeffrey S. Moller

In the aftermath of a major shipping disaster, a vessel owner may be expected to exercise its right to file a petition to limit its liability in accordance with the U.S. Shipowner’s Limitation of Liability Act, 46 USC §30501, et seq. This may evoke negative press and social media reaction with a now-familiar refrain: Why should a shipowner escape full liability for a disaster by hiding behind a 19th-century (i.e., outdated, antique, and ancient) statute? One might well ask whether the Limitation Act has outlived its usefulness, but this author’s belief is that the statute need not be repealed. Modern safety management systems, communication systems, and vessel tracking systems have served to make it far more difficult for owners to limit their liability, and the procedural benefits of the statute are helpful to all concerned. It may, however, be time for the United States to become signatory to the existing up-to-date international treaty on a limitation of liability. Continue reading “What the Heck Is “Privity”? Is the Limitation of Liability Act Still Relevant?”

IMO Interim Guidelines: Recent Developments in Maritime Cyber Risk Management

Mainbrace | September 2016 (No. 4)

Kate B. Belmont

Cyber risk management continues to be one of the most significant  challenges currently facing the maritime industry. With an overreliance on information technology (“IT”) and operational technology (“OT”), the shipping industry is vulnerable to cyber risks, cyber threats, and cyber attacks that could result in significant damages and loss, including loss of business and damage to reputation and property. While the maritime industry has yet to be regulated, various stakeholders have recognized the need for the industry to address cyber risk. As the United States Coast Guard continues to assess and evaluate cyber risk throughout the marine  transportation system, the International Maritime Organization (“IMO”) and various industry organizations have issued guidelines on cyber risk management this past year. Most notably, on May 20, 2016, the IMO approved Interim Guidelines on Maritime Cyber Risk Management (“IMO Interim Guidelines”). Continue reading “IMO Interim Guidelines: Recent Developments in Maritime Cyber Risk Management”

U.S. Coast Guard Updates Marine Casualty Reporting Forms

Jeanne M. Grasso, Jonathan K. Waldron, and Dana S. Merkel

Action Item: The U.S. Coast Guard released an updated version of the CG-2692 forms for reports of marine casualties, commercial diving casualties, and outer continental shelf-related casualties. Vessel owners and operators are encouraged to review the new forms and ensure the new forms are used for future reports. Continue reading “U.S. Coast Guard Updates Marine Casualty Reporting Forms”