ARBITR.LAW
RU / EN
US Supreme Court · No 18-1048

GE Energy: a nonsignatory and domestic estoppel

No Convention prohibition; the particular company’s entitlement to seek arbitration remained for remand.

The dispute and procedural issue

Following alleged motor failures, Outokumpu and insurers sued GE Energy, a subcontractor on a steel-mill project. GE sought arbitration under clauses in contracts it had not signed. The Eleventh Circuit considered the New York Convention to exclude that route for a nonsignatory, including reliance on domestic equitable estoppel.

The Supreme Court’s holding

On pages 6–7 of the Court opinion, Article II(3) is read as not excluding domestic grounds for referral beyond the situation expressly described. The Convention does not exhaustively govern nonsignatories and does not conflict with the relevant equitable-estoppel doctrines. This concerns compatibility of a domestic mechanism with the Convention, not a standalone worldwide jurisdiction test.

Disposition and questions left open

The appellate judgment was reversed and the case remanded. Pages 11–12 expressly leave two questions open: whether GE Energy can invoke estoppel and which law governs that determination. The decision therefore did not finally establish that company’s entitlement under the clause. Justice Sotomayor’s separate concurrence emphasises consent; it should not be substituted for the unanimous Court’s reasoning.

Using the comparative example

Identify the particular domestic doctrine, its requirements and governing law, then the competent court’s procedure. Compare Kabab-Ji in England, France and the parties guide. Russia’s statutory continuity rule on assignment has its own legal basis and should not be replaced with US estoppel.

Sources and legal references

General information. The applicable legal framework depends on the particular dispute, seat and enforcement country.