U.S. Supreme Court SHANFEROKE C. & S. CORP. v. WESTCHESTER SERVICE CORP., 293 U.S. 449 (1935)

[Page 293 U.S. 449, 451]

In case for any reason any such arbitration shall fail to proceed to a final award, either party may apply to the Supreme Court of the State of New York for an order compelling the specific performance of this arbitration agreement in accordance with the arbitration laws of the State of New York.'

The District Court interpreted the clause as making the arbitration enforceable only in state courts of New York; and on that ground denied the stay. On an appeal from the order of denial, the Court of Appeals held that, even if the clause should be so interpreted, section 3 of the United States Arbitration Act (9 USCA 3) authorized the stay. [Footnote 1] It therefore reversed the order and directed the District Court to grant the stay, with leave to that court 'to vacate it at any time, should it appear that the defendant is in default in proceeding with the arbitration.' 70 F.(2d) 297, 299. This Court granted certiorari 293 U.S. 541, 55 S.Ct. 95, 79 L.Ed. --.

[Page 293 U.S. 449, 454]

in demanding arbitration. The reasons why these contentions are without merit are sufficiently stated in the opinion of the Court of Appeals.

Affirmed. Footnotes

Footnote 1 Act of February 12, 1925, c. 213, 3, 43 Stat. 883 (9 USCA 3): 'If any suit or proceeding be brought in any of the courts of the United States upon any issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration under such an agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration.'

Footnote 2 In the lower federal courts there has been some difference of opinion as the whether a stay should be granted when the court is not in a position to compel arbitration. Compare Danielsen v. Entre Rios Rys. Co. ( D.C.) 22 F.(2d) 326, 328, with The Silverbrook (D.C.) 18 F.(2d) 144. See, too, The Beechwood (D.C.) 35 F.(2d) 41; The Volsinio (D.C.) 32 F.(2d) 357, 358; Ex parte De Simone (C.C.A.) 36 F.(2d) 773; The Fredensbro (D.C.) 18 F.( 2d) 983. Interpretations of the English arbitration statutes are in accord with the view adopted here. See Law v. Garrett, L.R. 8 Ch.Div. 26 (c.A.); Austrain Lloyd S.S. Co. v. Gresham Life Assurance Society, (1903) 1 K.B. 249; Kirchner & Co. v. Bruban, (1909) 1 Ch.Div. 413; The Cap Blanco, (1913) Pro. Div. 130.