## Facts

- A Norwegian shipowner and a Swiss charterer entered into three charter-party agreements for the vessels SYDFONN, FROSTFONN, and NORDFONN.
- Each charter party required arbitration in New York.
- A dispute arose, and the shipowner demanded arbitration in New York in 1972.
- Arbitrators issued an award for the shipowner in 1978.
- After delayed enforcement efforts in Switzerland, the shipowner petitioned in the Southern District of New York in December 1981 to confirm the award under the New York Convention and 9 U.S.C. §§ 201–208.
- The district court confirmed the award, concluding the Convention applies to awards rendered in the United States when the dispute involves foreign parties.

## Issues

1. Whether the New York Convention applies to an arbitral award rendered in New York when both parties are foreign entities.
2. Whether 9 U.S.C. § 202 permits treating an award made in the United States as “non-domestic” and therefore enforceable under the Convention rather than solely under Chapter 1 of the Federal Arbitration Act.

## Decision

- The Second Circuit affirmed the judgment confirming the arbitral award.
- The court held the award, though rendered in New York, was “non-domestic” because of the foreign parties and foreign commercial interests involved.
- The court rejected the argument that the Convention categorically excludes awards made in the United States.
- The court concluded the Convention and its implementing statute authorize U.S. courts to enforce such non-domestic awards under Chapter 2 of the Federal Arbitration Act.

## Legal Principles

- Under Article I(1) of the New York Convention and 9 U.S.C. § 202, an award rendered in the enforcing state may still fall within the Convention if it is “not considered as domestic” due to substantial foreign elements.
- The Convention’s coverage is not purely territorial; it includes certain domestically made awards that are international in character (including awards arising from arbitration between foreign entities).
- Courts should construe the Convention and Chapter 2 of the Federal Arbitration Act consistently with the Convention’s objective of facilitating recognition and enforcement of international arbitral awards.

## Conclusion

The Second Circuit held that an arbitration award made in New York between foreign parties may be treated as a “non-domestic” award under the New York Convention and 9 U.S.C. § 202, and therefore confirmed and enforced in U.S. courts under the Convention’s statutory regime.


Bergesen v. Joseph Muller Corp., 710 F.2d 928 (2d Cir. 1983)