Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-05117/USCOURTS-cand-3_05-cv-05117-8/pdf.json

Nature of Suit Code: 120
Nature of Suit: Marine Contract Actions
Cause of Action: 28:1333 Admiralty

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United States District Court

For the Northern District of California

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

GREGER LEASING CORP., a Nevada

corporation,

Plaintiff,

 v.

Barge PT. POTRERO, official number

523213, in rem, TED BUHL and JANE

DOE BUHL, individually, and the

marital community composed thereof;

BUHL DIVING & SALVAGE, a sole

proprietorship, in personam

Defendants. 

AND ALL RELATED ACTIONS

___________________________________

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No. C-05-5117 SC

ORDER GRANTING

PLAINTIFF'S MOTION TO

ENFORCE ARBITRATION

AGREEMENT 

 

I. INTRODUCTION

Plaintiff Greger Leasing Corp. ("Plaintiff") filed a Motion

to Enforce the Arbitration Agreement with Defendants Ted Buhl and

Buhl Diving & Salvage ("Defendants"). Defendants and Claimants

Riverview Equipment LLC and Jerico Products, Inc. ("Claimants"),

the current owner and bareboat charterer of the barge, opposed the

Motion. Specifically, Plaintiff seeks to engage in contractual

arbitration with Defendants and exclude Claimants from

participating. 

For the reasons stated herein, the Court hereby GRANTS

Plaintiff's Motion to Enforce the Arbitration Agreement. 

II. BACKGROUND

The facts surrounding the maritime lien and the arrest of in

rem Defendant, the Barge Pt. Potrero ("Barge"), have been set

Case 3:05-cv-05117-SC Document 101 Filed 11/22/06 Page 1 of 3
United States District Court

For the Northern District of California

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forth in previous Orders of this Court, familiarity with which is

presumed. For purposes of this Order, it is necessary to note

that Plaintiff Greger Leasing signed a Towage Agreement (the

"Agreement") with Buhl Diving & Salvage on May 28, 2005. See

Chanco Decl., Exh. A. Pursuant to paragraph 17 of the Agreement,

the parties agreed to arbitrate disputes under the Federal

Arbitration Act, 9 U.S.C. § 1 et seq. Id. In its prior Order

dated April 5, 2006, this Court granted Defendants' Motion to Stay

and Compel Arbitration. See Docket No. 82. This Court ordered

Plaintiff and Defendants to proceed to arbitration as provided by

the Towage Agreement. Id. 

III. DISCUSSION

The parties to the Agreement are Plaintiff and Defendants. 

Chanco Decl., Exh. A. As a result, this Court's prior Order

instructed those two parties to proceed to arbitration. Docket

No. 82. This did not include Claimants. As the Supreme Court has

held, "an arbitration agreement must be enforced notwithstanding

the presence of other persons who are parties to the underlying

dispute but not to the arbitration agreement." Moses H. Cone

Memorial Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 20 (1983). 

Furthermore, the Federal Arbitration Act "simply requires courts

to enforce privately negotiated agreements to arbitrate, like

other contracts, in accordance with their terms." Volt Info.

Sciences v. Board of Trustees, 489 U.S. 468, 478 (1989). In light

of the Supreme Court's mandate, the contractual arbitration

between Plaintiff and Defendants should commence. Claimants,

though unable to participate, should take comfort that the

Case 3:05-cv-05117-SC Document 101 Filed 11/22/06 Page 2 of 3
United States District Court

For the Northern District of California

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Arbitration Panel's ruling will settle the key issues in dispute,

saving time and expense. 

IV. CONCLUSION

The Court hereby GRANTS Plaintiff's Motion to Enforce the

Arbitration Agreement. Claimants may not participate in the

arbitration hearings.

IT IS SO ORDERED.

Dated: November 22, 2006

 

UNITED STATES DISTRICT JUDGE

Case 3:05-cv-05117-SC Document 101 Filed 11/22/06 Page 3 of 3