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New York Court Confirms Israeli Arbitral Award In Etrog Dispute

By Howard M. Friedman

In Schwartzman v. Harlap, (ED NY, April 13, 2009), a New York federal district court granted a petition to confirm a foreign arbitral award in a dispute between an etrog grower and the grower's exclusive distributor. An etrog (citron) is a fruit used in the worship services by Jews on the holiday of Sukkot. Last week's Jewish Press summarized the case (which had been brought under Chap. 2 of the Federal Arbitration Act):

The case concerned Yaakov Charlop, founder of the popular Esrog Warehouse in Queens who had contracted to purchase esrogim from Betzalel Schwartzman, who represents the renowned Schwartzman Esrogim grown in Israel. Charlop withheld payment of $66,000 because he claimed that the esrogim were of substandard quality.... [,]that he was supposed to be the exclusive distributor of Schwartzman esrogim in the United States and that Betzalel Schwartzman, proprietor, had sold esrogim to other dealers here, thus violating the agreement.

In a handwritten agreement ... Rabbi Eliezer Stern, a respected scholar and head of the Belzer Beth Din in Bnei Brak, was specified ... as the designated Rav to whom each side would bring any disagreements.... Charlop claims now that he was unaware at that time that Rabbi Stern was also to serve as the ... kosher certifier of the esrogim.

The case was heard in Israel at the Belzer Beth Din... [which] decided against Charlop and ordered him to pay $66,000 to Schwartzman. Charlop felt that the Beth Din had a conflict of interest... [that] predisposed the Beth Din to be partial to Schwartzman.... Charlop then brought the disagreement to Federal Court in the United States, where ... Judge Cogan ruled against dismissing the Beth Din decision, writing that, "Respondent cannot use this court to obtain a second bite of the esrog."

[Thanks to Joel Kaatz (Relig. & State In Israel) for the lead.]

Full post as published by Religion Clause on May 18, 2009 (boomark / email).