Jeffrey G. Heston v. G. B. Capital Holdings, LLC

In 2002, the San Diego Unified Port District ended the long-standing practice of “free anchorage” in San Diego bay. Using its police authority, the Port District mandated that all vessels must move to take up berthing at a Port facility, in this case of a private vessel, either a marina or mooring ground. Failure to do so would result in civil and criminal penalties. Such mandate forces a contract between the Port District through its concessionaires and the owner of the vessel. The contract at issue contains a provision providing for arbitration in the case of disputes. I. Does such a contract obtained in this manner sustain a determination of a “free and fair” formation on grounds equitable to both parties under the Federal Arbitration Act. II. Does this contract sustain an interpretation as a maritime contract necessary for the district court’s jurisdiction pursuant to 46 USC §31301, etseq. III. Does this contract sustain an interpretation as one of interstate commerce necessary for the jurisdiction of the Federal Arbitration Act.