America Chung Nam, LLC v. Mitsui O.S.K. Lines, Ltd.

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

AMERICA CHUNG NAM, LLC et al., Case No. 2:23-cv-07676-SB-JPR

Plaintiff,

v. ORDER DENYING MOTION TO

REMAND [DKT. NO. 30] AND

MITSUI O.S.K. LINES, LTD. et al., GRANTING MOTION TO

COMPEL ARBITRATION [DKT.

Defendants. NO. 23-3]

Plaintiff America Chung Nam (ACN) exports wood chips from the United States to China. Because wood chips lose their usefulness if they dry out, ACN chartered several specialized, humidity-controlled ships designed for transporting these products from Defendants Mitsui O.S.K. Lines, MOL (Americas) LLC, and MOL Drybulk, Ltd. (collectively MOL). Then COVID surged in China. China shut down several cities, including Dongguan, ACN’s intended destination. Unable to ship to Dongguan, ACN no longer needed the ships. But under the terms of the charter agreements (called “Charter Parties”), ACN was still obligated to pay MOL—and at rates ACN claims exploited the global crisis. So ACN sued MOL in California state court, alleging violations of California’s Business and Professions Code, fraud, misrepresentation, negligence, and unjust enrichment. MOL…