Zapata, a Texas company, entered into a contract for Unterweser, a German company, to tow an oil-drilling
Question:
Zapata, a Texas company, entered into a contract for Unterweser, a German company, to tow an oil-drilling rig from Louisiana to Italy. The contract stated, “Any dispute arising must be treated before the London Court of Justice.” While Unterweser was towing the rig in the middle of the Gulf of Mexico, a severe storm arose and damaged the rig. Zapata told Unterweser to tow the damaged rig to the nearest port, Tampa, Florida. Three days later, Zapata sued Unterweser in federal court in Tampa for damage to the rig. Unterweser moved to dismiss the suit, claiming that the suit should be heard in London. The case was ultimately appealed to the U.S. Supreme Court. What do you think resulted and why?
Step by Step Answer:
The Legal And Ethical Environment Of Business
ISBN: 9781454893028
2nd Edition
Authors: Gerald R. Ferrera, Mystica M. Alexander, William P. Wiggins, Cheryl Kirschner, Jonathan J. Darrow