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Arbitration Decision Brief: Lessons from an International Grape Dispute

Dispute regarding the use of private surveys and a potential deduction agreement.

The Fruit and Vegetable Dispute Resolution Corporation (DRC) has developed a series of articles summarizing past arbitration decisions. These articles will help members understand how the DRC Dispute Rules and Standards (R&S) apply in a dispute.

The DRC Dispute R&S states that all DRC arbitrations are private and confidential. As such, the names of all parties, including arbitrators and companies, are not included. A reminder that the DRC’s sole role is to administer the arbitration process; the DRC does not participate in any hearings. Therefore, this summary is based solely on the arbitrator’s written decision and may not reflect important information shared with the arbitrator through written briefs or verbal testimony.

ABSTRACT

The arbitration decision addresses a dispute between parties from Spain and Canada regarding an alleged agreement that the product was purchased with a Specific Grade Standard (U.S. No. 1) and whether the product met those standards upon arrival.

The arbitrator concluded that there was insufficient evidence to support the Respondent’s alleged agreement to purchase the product to a Specific Grade Standard (U.S. No. 1). Without enough evidence to uphold this alleged agreement, the arbitrator decided the U.S. No. 1 Grade Standard could not be taken into consideration. Consequently, the assessment of conformance to the contract would default to the DRC Good Arrival Guidelines.

This summary provides an essential overview of the arbitration decision and its implications for international commercial disputes.

The attached PDF of DRC File #19868 is available for viewing and downloading. Inside, you will discover a detailed arbitration brief that includes additional information such as:

Summary of Facts
The Arbitrator’s Analysis and Reasoning
The Arbitrator’s Decision
DRC’s Comments
Additional Resources

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