Case ID: f-appx_594/html/0048-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

MIDOIL USA, LLC, Petitioner-Appellant, v. ASTRA PROJECT FINANCE PTY LTD., Respondent-Appellee.
    No. 14-912-CV.
    United States Court of Appeals, Second Circuit.
    Feb. 24, 2015.
    John G. Dellaportas, Morgan, Lewis & Bockius LLP, New York, N.Y., for Appellant.
    Marshall D. Sweetbaum, Sweetbaum & Sweetbaum, Lake Success, N.Y., for Ap-pellee.
    Present: ROSEMARY S. POOLER, DEBRA ANN LIVINGSTON and CHRISTOPHER F. DRONEY, Circuit Judges.
   SUMMARY ORDER

Petitioner-appellant MidOil USA, LLC (“MidOil”) appeals from the portion of the August 15, 2013 opinion of the United States District Court for the Southern District of New York (Crotty, J.), denying MidOil’s motion to amend its petition to compel arbitration, as well as the district court’s February 20, 2014- order denying reconsideration of that decision. We assume the parties’ familiarity with the underlying facts, procedural history, and specification of issues for review.

With respect to MidOil’s arguments that Astra Resources is bound to arbitrate under theories of incorporation by reference and veil-piercing, we affirm substantially for the reasohs stated by the district court in its August 15, 2013 opinion. The incorporation by reference theory fails because MidOil points to no agreement adopted by Astra Resources which incorporated the Corporate Financing Agreement (“CFA”) and the arbitration clause therein. See Thomsortr-CSF, S.A. v. Am. Arbitration Ass’n, 64 F.3d 773, 777 (2d Cir.1995) (“E & S has not attempted to show that the Working Agreement was incorporated into any document which Thomson adopted. Thus, Thomson cannot be bound under an incorporation theory.”). Similarly, even assuming, arguendo, that MidOil has sufficiently alleged that Astra Resources dominated Astra Project, MidOil fails to show that Astra Resources’ control over Astra Project “has been used to commit a fraud or other wrong.” Freeman v. Complex Computing Co., 119 F.3d 1044, 1052 (2d Cir.1997). Although MidOil claims that Astra Resources and Astra Project formed a separate oil trading partnership with Theodore Cranendonk and that Astra Resources failed to make shares available to MidAst, these allegations do not demonstrate how Astra Resources’ alleged domination of Astra Project “has been used to commit a fraud or wrong.” Id. (emphasis added).

The remainder of MidOil’s arguments were presented for the first time in its motion for reconsideration in the district court, and are thus not properly before us on appeal. See Official Comm, of Unsecured Creditors of Color Tile, Inc. v. Coopers & Lybrand, LLP, 322 F.3d 147, 159 (2d Cir.2003) (“Generally, we will not consider an argument on appeal that was raised for the first time below in a motion for reconsideration.”).

Even if we exercised our discretion to consider these arguments, we would find them unpersuasive. MidOil’s attempt to compel Astra Resources to arbitrate under a theory of assumption fails because there is no allegation that Astra Resources assumed an obligation to arbitrate. See Thomsm-CSF, 64 F.3d at 777 (“In the absence of a signature, a party may be bound by an arbitration clause if its subsequent conduct indicates that it is assuming the obligation to arbitrate.”). Furthermore, MidOil cannot bind Astra Resources to arbitrate under general principles of agency, as its proposed amended petition alleges only that Jaydeep Biswas was an officer of Astra Resources and Astra Project, not that he did or had the actual or apparent authority to bind Astra Resources to arbitrate by signing the CFA on behalf of Astra Project.

We likewise would reject MidOil’s argument that it was entitled to discovery and an evidentiary hearing before denial of leave to amend. The district court concluded that MidOil’s motion to amend failed under Federal Rule of Civil Procedure 15(a) on futility grounds. Thus, even accepting all of MidOil’s allegations as true, it failed to sufficiently plead Astra Resources’ obligation to arbitrate. MidOil points to no authority for the proposition that it is entitled to conduct discovery to supplement the insufficient allegations in its proposed amended petition.

We have considered the remainder of MidOil’s arguments and find them to be without merit. Accordingly, the judgment of the district court hereby is AFFIRMED.