The case of the day is In re Newbrook Shipping Corp. (D. Md. 2020). Nardella Corp., a Nevis company, obtained an order from a South African court to arrest the M/V Falcon Traveller to provide security for a claim in an arbitration in Singapore regarding the arrest of another vessel, the M/V Falcon Carrier.. Newbrook challenged the arrest, and the South African court set it aside on the grounds that the Falcon Traveller was not associated with the Falcon Carrier, even though Nadella had acted in good faith. Later, Newbrook obtained a similar order in South Africa to arrest the M/V Falcon Confidence, and Falcon Confidence Shipping sought to set the arrest aside. The court denied that motion.
Newbrook and Falcon Confidence Shipping then brought a § 1782 application to seek evidence GMS, a Maryland company alleged to be Nadella’s registered agent, and Anil F. Sharma, alleged to own Nadella. They wanted to get evidence about Nadella’s claims in South Africa that the Falcon Traveller and the Falcon Confidence and about Nadella’s corporate structure.
The court granted the ex parte application. GMS then moved to strike service, quash the subpoenas, and dismiss the action. (more…)