Originally from ICDR Awards and Commentaries - Volume 2

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ICDR CASE NO. 532-10

FINAL AWARD ON THE MERITS

American Arbitration Association (AAA)
International Center for Dispute Resolution (ICDR)

IN THE MATTER OF ARBITRATION BETWEEN: ROHM AND HAAS COMPANY, (Claimant) and ARKEMA FRANCE, (Respondent) ICDR Case Number: ***** 532-10

Subject Matters:
Swap-agreements; right of a party to terminate and agreement; nature of the agreement (short- or long-term); motions for summary disposition; contract interpretation.

Findings: 
The Tribunal ruled in favor of the Respondent on all substantive issues. It held that: (1) the 2008 Swap Agreement Extension was not a new five-year swap agreement, but a year-to-year agreement; (2) the 2008 Swap Agreement Extension superseded and replaced the 1998 Swap Agreement; (3) the termination right in the 2008 Swap Agreement Extension was the operative right, and it allowed Respondent to terminate the Extension (and thereby the Parties’ broader swap relationship) on three months’ notice; (4) Respondent properly exercised its right to terminate the Extension; and (5) Respondent was not liable for breaching the Parties’ agreements, and therefore Claimant was not entitled to any damages.

Parties: 
Claimant: Rohm and Haas Company; a US Company
Respondent: Arkema France; a French Company

Place of Arbitration: 
New York, New York (USA) 

Applicable Law: 
State of New York