Servotronics, Inc. v. Rolls-Royce PLC

	Servotronics, Inc. v. Rolls-Royce PLC
	Term: 2021
	Important Dates
	Dismissed: September 29, 2021
	Outcome
	dismissed
	Vote
	N/A
	Majority
	N/A

Servotronics, Inc. v. Rolls-Royce PLC is a case scheduled for argument before the Supreme Court of the United States on October 5, 2021, during the court's October 2021-2022 term. The case was decalendared on September 8, and was dismissed on September 29, 2021.

HIGHLIGHTS

The case: After unsuccessful negotiations over an claim made by Rolls-Royce PLC (“Rolls-Royce”) against Servotronics, Inc. (“Servotronics”), the parties submitted their matter to binding arbitration in Birmingham, England. Servotronics filed a motion to subpoena relevant records held by the Boeing Company (“Boeing") with the United States District Court for the Northern District of Illinois, citing the authority bestowed on district courts to assist in foreign discovery proceedings under 28 U.S.C. §1782(a). Rolls-Royce and Boeing filed a motion to quash the subpoena, arguing that §1782(a) does not extend to private commercial arbitral tribunals. The district court agreed with Rolls-Royce and Boeing and quashed the subpoena. On an appeal by Servotronics, the United States Court of Appeals for the 7th Circuit the district court's ruling.^[1] Click here to learn more about the case's background.

The issue: The case concerned whether a private commercial arbitral tribunal is a foreign or international tribunal within the meaning of 28 U.S.C. §1782(a).

The question presented: "Whether the discretion granted to district courts in 28 U.S.C. §1782(a) to render assistance in gathering evidence for use in 'a foreign or international tribunal' encompasses private commercial arbitral tribunals, as the Fourth and Sixth Circuits have held, or excludes such tribunals without expressing an exclusionary intent, as the Second, Fifth, and, in the case below, the Seventh Circuit, have held."^[2]

The outcome: The U.S. Supreme Court the case.^[3]

The case came on a writ of certiorari to the United States Court of Appeals for the 7th Circuit. To review the lower court's opinion, click here.

Timeline

The following timeline details key events in this case:

September 29, 2021: The U.S. Supreme Court dismissed the case.
September 8, 2021: The U.S. Supreme Court decalendared the case. The court was scheduled to hear oral arguments on October 5, 2021.
March 22, 2021: The U.S. Supreme Court agreed to hear the case. Justice Samuel Alito did not participate in the consideration of or decision on the petition.^[3]
December 7, 2020: Servotronics, Inc. appealed to the U.S. Supreme Court.
September 22, 2020: The United States Court of Appeals for the 7th Circuit affirmed the United States District Court for the Northern District of Illinois' ruling.

Background

Rolls-Royce PLC ("Rolls-Royce") manufactured and sold an engine to the Boeing Company ("Boeing") that was incorporated into Boeing's 787 Dreamliner aircraft. During testing, the aircraft was damaged when a piece of metal got caught in the engine valve and the engine caught fire. Boeing sought compensation for the damage from Rolls-Royce, as the manufacturer of the engine. Rolls-Royce and Boeing settled for $12 million, and Rolls-Royce subsequently sought indemnification from the valve's manufacturer, Servotronics, Inc. ("Servotronics").^[1]

After unsuccessful negotiations between Rolls-Royce and Servotronics, the matter was submitted to binding arbitration in Birmingham, England. Servotronics applied to the U.S. District Court for the Northern District of Illinois for a subpoena to compel Boeing to produce documents for use in the arbitration proceeding under 28 U.S.C. §1782(a). Chapter 28, Section 1782 of the U.S. Code authorizes the federal district courts to provide assistance to foreign and international tribunals and litigants before those tribunals with procuring testimonial and documentary evidence needed in the foreign proceedings.^[1]

The district court judge initially granted the request and issued a subpoena to Boeing to produce documents for use in the Birmingham arbitration proceeding. Rolls-Royce and Boeing both made a motion to quash the subpoena, arguing that 28 U.S.C. § 1782(a) does not allow the court to assist in private foreign commercial arbitration. The judge agreed with Rolls-Royce and Boeing and subsequently quashed the subpoena. Servotronics appealed the district court's ruling to the United States Court of Appeals for the 7th Circuit, and the court of appeals affirmed.^[1]

Circuit split

A circuit split exists as to whether private foreign commercial arbitration is a foreign or international tribunal under 28 U.S.C. § 1782(a). Here, the 7th Circuit joined the 2nd Circuit (Natl. Broadcasting Co. v. Bear Stearns Co.) and 5th Circuit (Republic of Kazakhstan v. Biedermann) in holding that such a proceeding is not a foreign or international tribunal under 28 U.S.C. § 1782(a). These courts held that § 1782(a) authorizes district courts to provide assistance in state-sponsored foreign tribunals only.^[1]

The 6th Circuit (Abdul Latif Jameel Transp. Co. v. Fedex Corp.) and 4th Circuit (Servotronics, Inc. v. Boeing Co.) found the opposite, holding that a private foreign arbitral tribunal is a foreign or international tribunal under § 1782(a).^[1]

Question presented

The petitioner presented the following question to the court:^[2]

Question presented:

“

Whether the discretion granted to district courts in 28 U.S.C. §1782(a) to render assistance in gathering evidence for use in 'a foreign or international tribunal' encompasses private commercial arbitral tribunals, as the Fourth and Sixth Circuits have held, or excludes such tribunals without expressing an exclusionary intent, as the Second, Fifth, and, in the case below, the Seventh Circuit, have held.^[4]

”

Oral argument

The U.S. Supreme Court dismissed the case before oral argument.^[3]

Outcome

The U.S. Supreme Court dismissed the case in an order released on September 29, 2021, following a request to dismiss filed by both parties involved in the case.^[3]

October term 2021-2022

See also: Supreme Court cases, October term 2021-2022

The Supreme Court began hearing cases for the term on October 4, 2021. The court's yearly term begins on the first Monday in October and lasts until the first Monday in October the following year. The court generally releases the majority of its decisions in mid-June.^[5]

The court agreed to hear 68 cases during its 2021-2022 term.^[6] Four cases were dismissed and one case was removed from the argument calendar.^[7]

The court issued decisions in 66 cases during its 2021-2022 term. Three cases were decided without argument. Between 2007 and 2021, SCOTUS released opinions in 1,128 cases, averaging 75 cases per year.