Originally from Dispute Resolution Journal

INTERNATIONAL

Removal Authority

In a case of first impression in the 9th Circuit, the appeals court ruled that a district court has removal jurisdiction under 9 U.S.C. § 205 where the defendant argued collateral estoppel as an affirmative defense based on an arbitration award falling under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. The 9th Circuit reasoned that removal jurisdiction existed because the arbitration agreement “related to” the subject matter of the action and could conceivably affect the outcome of the plaintiff’s suit.