Second Circuit affirms denial of injunction against prosecution of lawsuit in Mexico where substance of foreign action turned on issue of Mexican law having to do with standing to arbitrate.

A dispute arose between LAIF X SPRL (LAIF X or plaintiff) (a Belgian partnership) and Telinor Telefonia (Telinor) of Mexico. Plaintiff argued that Telinor had illegally diluted its ownership interest in Axtel, S.A. de CV (a Mexican telecommunications corporation)(Axtel). Telinor was Axtel's controlling shareholder. Its bylaws require arbitration of disputes involving the company and its shareholders.

Plaintiff initially filed a demand for arbitration with the American Arbitration Association (AAA). Telinor then su LAIF X in a Monterrey Mexico court. Its thrust was that plaintiff had gotten its Axtel shares [i]or[/i] part of to the other an invalid ...