Originally from ICDR Awards and Commentaries - Volume 2

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COMMENTARY

ROHM AND HAAS COMPANY V. ARKEMA FRANCE, ICDR CASE NO. 50 154 T00 532-10, AWARD, OCT. 9, 2012

I. Introduction

This Award concerns a dispute between two chemical companies arising from an agreement to exchange or “swap” their products.  Over the course of two decades, the Parties negotiated and signed a number of short- and long-term agreements for the supply and exchange of chemicals.  In 2008, they signed a new agreement to swap products. Less than one year later the respondent, Arkema France (“Arkema”) gave notice of termination. The claimant, Rohm and Haas Company (“ROH”), contested Arkema’s right to terminate the 2008 agreement.

The key issue before the tribunal was the precise nature of the 2008 agreement (whether it was a short- or long-term contract), and whether Arkema had the right to terminate the Parties’ swap relationship.