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Note: After payment via LC, US Buyer, Hall Steel Co., alleged that the goods (steel coils) did not meet contract specifications and sued UK Seller, Metalloyd Ltd., for breach of contract. When Seller/Beneficiary removed the case from the Michigan state courts to the US federal courts pursuant to statute, it also moved to dismiss or stay the proceeding since the underlying contract contained an arbitration clause. The motion was granted and arbitration commenced.

On the entry by the arbitrator of interim awards to Seller/Beneficiary for costs incurred in the prearbitration litigation in Michigan of UK57,516.16 plus US$218,622.89, it moved for judicial confirmation in the court proceeding. While agreeing that the interim awards were enforceable because they arose from an issue that is separate and independent from the subject of the arbitration, the United States District Court for the Eastern District of Michigan, Rosen, J., denied Seller/Beneficiary's motion, ruling that Seller/ Beneficiary did not identify an immediate need for relief and noting incidentally that the costs awarded were "staggering".

[JEB/zrb]

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