Oil Subcontractor Can Force Arbitration, 9th Circ. Says

Law360, Los Angeles (March 4, 2016, 4:32 PM EST) -- The Ninth Circuit on Thursday ordered a lower court to compel arbitration in a contractual dispute between oilfield services company Superior Energy Services LLC and Cabinda Gulf Oil Co. Ltd., a Chevron subsidiary, saying a lower court had applied the incorrect precedent.

A three-judge panel said the California district court erred in spurning Superior’s assertion that as the subcontractor to a main contract relating to oil exploration off the coast of Angola between Cabina and Operatec Maquinas e Representacoes LDA, an Angolan company, it was an intended third-party beneficiary of the general contract and thus had the right to compel arbitration....

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