ZF Automotive US, Inc. v. Luxshare, Ltd. (21-401)

argument 21-401

ZF Automotive US, Inc. v. Luxshare, Ltd.

Supreme Court of the United States 1h 49m 7 speakers 8 chapters transcribed 7 days ago official recording ↗
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What is the Supreme Court’s central question about the meaning of “foreign tribunal” in §1782?

John G. Roberts 0:00
We'll hear argument this morning in case twenty one four oh one, ZF Automotive US Incorporated versus Luxure Limited and the consolidated case. Mr Martinez.
Christopher A. Martinez 0:12
Mr. Chief Justice, and may it please the Court, Section seventeen eighty two's text, structure, and history made clear that district courts are not authorized to grant discovery for use in purely private foreign arbitrations. The key statutory language is the complete phrase foreign tribunal. That phrase most naturally refers to government tribunals, just like the phrase foreign leader most naturally refers to government leaders. Ordinary and legal usage confirm that interpretation. So do nearby provisions using the same phrase, as well as this Court's decision in Intel. The history supports us too. The Rules Commission drafted this statute under a direct command from Congress in the nineteen fifty eight Act to promote Interstate comedy and assist the judicial and quasi judicial arms of foreign governments.
Christopher A. Martinez 1:03
The Commission, Senate, and House reports all show that the drafters chose the words foreign tribunal to achieve these government focused objectives. Luxhare misreads the text and ignores the context. It can't identify a single person, not a lawmaker, judge, lawyer, scholar, anyone, who ever claimed 1782 covers private arbitrations, either in nineteen sixty-four or for decades afterwards. Luxhare's approach would flood district courts with discovery applications, undermine the goals of arbitration, and inflict asymmetric harm on American companies and American businesses. Congress didn't intend these results. Below, Luxhare admitted that under the rules Luxhare itself agreed to, the German arbitrators in this case would refuse to order the discovery it's now seeking here.
Christopher A. Martinez 1:53
You should reject any interpretation of seventeen eighty two that encourages parties to run to U. S. courts to circumvent their agreements in this way. Congress did not force American judges to referee private discovery fights in purely private, non governmental arbitrations abroad. I welcome the Court's questions. And I'd like to start perhaps with the statutory text.
John G. Roberts 2:17
Mr Martinez, uh why isn't it natural to think of a foreign tribunal as one uh uh established under the laws of a foreign country? It's an a a tribunal in Italy, uh you know, it its existence um is say due to Italian corporate law or whatever. Um and enforceability of its judgments might well be Um particularly uh compelling in Italy. Um I don't know why it's necessarily uh referencing a governmental entity.
Christopher A. Martinez 2:53
Well I think a c a couple of points on that, Your Honor. I think the complete phrase foreign tribunal, um that's sort of a common construction, adding the adjective foreign to a noun that has uh you know strong governmental connotations. We've given the examples in our brief of foreign leader, foreign flag, foreign law, uh foreign official. When when people hear those th those sort of phrases using the word foreign with with a noun like that, I think it most naturally conjures up the idea. idea of a a an official, a flag, a leader of a government. And I think that's the sort of intuition, that's the common construction, and I think that common construction Well,
John G. Roberts 3:28
it kind of i it might be because you don't think of private people as having their own flags. Um uh but tribunal, um I mean I understand your argument uh that it carries a governmental connotation. but I'm not sure that excludes um a uh th that i excludes uh um any other tribunal. I mean the arbitral bodies function as a tribunal. Uh it's natural to refer to them in that way. And particularly when you add foreign, it seems to me that that means it's You know, a private arbitrable uh body, a tribunal, uh that happens to be located set up in a foreign country in France.
Christopher A. Martinez 4:06
So a couple of points on that, Your Honor. I do think the phrase a phrase like foreign leader would not be sort of ordinarily used to refer to a nongovernmental entity. You know, the the captain of the Manchester United football team is foreign and is a leader, but is not a foreign leader.

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