Republic of Nicaragua, a Foreign Sovereign v. Standard Fruit Company, Standard Fruit and Steamship Company, and Castle & Cooke, Inc.

The Republic of Nicaragua appeals from two orders of the district court which denied its motion to compel international arbitration of a contract dispute (Count I) and granted summary judgment to Standard Fruit Company (“SFC”) and its two parent companies, Standard Fruit and Steamship Company (“Steamship”) and Castle & Cooke, Inc. (“C & C”), on Nicaragua’s breach of contract claim (Count II).

Nicaragua raises three points on appeal. First, it argues that the questions of whether a document entitled “Memorandum of Intent” was a valid contract and whether Standard Fruit Company was bound by that contract should have been referred to arbitration in the first instance, not decided by the district court. Secondly, it contends that disputed issues of material fact exist on the question of whether the Memorandum of Intent was a binding contract for the purchase and sale of bananas, or merely an “agreement to agree” at some later date. Finally, Nicaragua alleges that a factual dispute exists on the question of whether the Memorandum of Intent was executed on behalf of SFC, thus precluding summary judgment on that issue as well.

We hold that although it was the court’s responsibility to…