Agro Products Trading Corpn. and another v. M/V Mercantil Parati and others - U.S. District Court (District of New Jersey) (Alfred M. Wolin D.J.) - 8 May 1991

Vessel arrested in America pursuant to claim by cargo interests arising out of bill of lading providing that all disputes are to be arbitrated in London - Whether plaintiffs entitled to maintain arrest of vessel in America as security for their arbitration claim

The Brazilian vessel Mercantil Parati was owned by the defendants Merchem Mercantil E. Navegacao S.A. The defendants Empresa de Navigacao and Tamar Shipping Ltd. issued bills of lading to the plaintiff cargo interests. The bills incorporated the terms of a voyage charter between Tamar and Transgrain B.V., the seller of the cargo to the plaintiffs. Clause 13 of the charter provided that “this contract shall be governed by the laws of England . . .” Clause 18 provided that “any dispute arising during execution of this charterparty shall be settled in London . . .”.