Transamerica Ship Holdings v. Control

Background

Transamerica Ship Holdings, Ltd. and U.S. Shipbrokers, LLC petitioned the court to confirm a March 24, 2025 arbitration award. The petition arose from an Agreement of Purchase Sale under which the respondents were to purchase the passenger cruise vessel M/V BERAKAH. The petitioners said the respondents failed to pay $325,000 required by two promissory notes.

The parties submitted claims, defenses, and supporting documents in the arbitration, and an evidentiary hearing took place in New York on November 14, 2024. The respondents argued that the vessel’s condition had deteriorated enough to justify not paying the notes, but the arbitration panel rejected that position and ruled for the petitioners.

Applicable standard

The court applied Chapter 2 of the Federal Arbitration Act, which implements the New York Convention on recognition and enforcement of international arbitration awards. Under that law, a court must confirm an award unless one of seven specified grounds for refusing recognition or enforcement applies. The party opposing enforcement bears the burden of proving such a ground.

Although the respondents did not respond to the petition, the court explained that it could not grant the petition solely because it was unopposed. It had to examine the petitioners’ submissions and determine whether they showed that no material factual dispute prevented judgment. The court found that the arbitration decision provided more than the minimal justification required for confirmation and found no indication that any of the seven refusal grounds applied.

Court’s ruling

The court granted the petition, confirmed the March 24, 2025 arbitration award in all respects, and entered judgment for the petitioners against the respondents. The judgment ordered:

- $125,000, plus $18,696.60 in prejudgment interest at 7% annually, for a total of $143,696.60, jointly and severally against Larry Singh and Marine Control, Inc.; - $200,000, plus $58,108.33 in prejudgment interest at 7% annually, for a total of $258,108.33, jointly and severally against Larry Singh and Surety Unlimited Services, Inc.; - $15,000 in arbitration fees and $160.40 in costs from the court proceeding, jointly and severally against all respondents; and - Post-judgment interest at the statutory rate until payment.

Judge Jeannette A. Vargas also stated that the court affirmed post-award prejudgment interest at the 7% and 15% annual rates provided in the two promissory notes, respectively, through the date of judgment.