Justia Arbitration & Mediation Opinion Summaries

The Second Circuit held that the district court erred in declining to vacate an arbitral award‐creditor’s ex parte petition for entry of a federal judgment against a foreign sovereign premised on an award made under the International Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). The court rejected Mobil's argument that 22 U.S.C. 1650a provides an independent grant of subject‐matter jurisdiction for actions against foreign sovereigns and decided that the Foreign Sovereign Immunities Act (FSIA), 28 U.S.C. 1330, 1391(f), 1441(d), 1602‐1611, provides the sole basis for subject‐matter jurisdiction over actions to enforce ICSID awards against a foreign sovereign. Because Mobil's utilization of ex parte proceedings were neither permitted by the FSIA nor required by Section 1650(a), the court reversed Venezuela's motion to vacate, vacated the judgment in favor of Mobil, and remanded with instructions to dismiss the ex parte petition. View "Mobil Cerro Negro, Ltd. v. Bolivarian Republic of Venezuela" on Justia Law

The incorporation of the rules of the International Chamber of Commerce (ICC) into an arbitration agreement constitutes clear and unmistakable evidence of a delegation of gateway issues to the arbitrator. The Ninth Circuit vacated the district court's judgment entering a preliminary injunction prohibiting sureties from pursuing claims against PGE in arbitration and denying a mandatory stay of the judicial proceedings under section 3 of the Federal Arbitration Act (FAA), 9 U.S.C. 3. The panel held that the district court erred in enjoining the sureties from participating in the ICC arbitration and denying at least a temporary stay of the litigation under the FAA, preventing the arbitral tribunal from addressing the scope of the arbitration. View "Portland General Electric Co. v. Liberty Mutual Insurance Co." on Justia Law

In this contract dispute between Getma and the Republic of Guinea, the Common Court of Justice and Arbitration of the Organization for the Harmonization of Business Law in Africa (CCJA), a court of supranational jurisdiction for Western and Central African States, set aside an award in favor of Getma. Getma sought to enforce the annulled award in the United States. The D.C. Circuit held that the CCJA is "a competent authority" for purposes of article V(1)(e) of the New York Convention, and for reasons of international comity, the court declined to second-guess a competent authority's annulment of an arbitral award absent extraordinary circumstances. Because Getma's arguments failed under this stringent standard, the court affirmed the judgment of the district court refusing to enforce the award. View "Getma International v. Republic of Guinea" on Justia Law

After an arbitral tribunal in London found the Government of Belize in breach of a settlement agreement with The Bank of Belize Limited, the tribunal ordered that Belize pay the Bank a substantial monetary award. Belize subsequently petitioned for enforcement of the award in district court. The district court granted the petition and Belize appealed, raising multiple challenges. The court accorded Belize's arguments full consideration after careful examination of the record and found them either largely asked and answered by Circuit precedent, or otherwise properly resolved by the district court. The court rejected Belize's argument that the district court's enforcement of the arbitral award violated the New York Convention because it was "contrary to the public policy of" the United States pursuant to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958, art. V(2)(b), 21 U.S.T. 2517, T.I.A.S. 2517, T.I.A.S. No. 6997, 330 U.N.T.S. 3 (1970); 9 U.S.C. 207. Accordingly, the court affirmed the judgment. View "Belize Bank Limited v. Government of Belize" on Justia Law

CBF, appellants and award-creditors, challenged the district court's two judgments dismissing CBF's initial action to enforce and subsequent action to confirm a foreign arbitral award against appellees as alter-egos of the then defunct award-debtor. The court granted appellees' petition for rehearing for the limited purpose of vacating the original decision and simultaneously issuing this amended decision to correct the court's instructions to the district court with regards to the applicable law for an enforcement action at Section I.c., infra. In No. 15‐1133, the court held that the district court both (1) erred in determining that the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards and Chapter 2 of the Federal Arbitration Act, 9 U.S.C. 201 et seq., require appellants to seek confirmation of a foreign arbitral award before the award may be enforced by a United States District Court and (2) erred in holding that appellants' fraud claims should be dismissed prior to discovery on the ground of issue preclusion as issue preclusion was an equitable doctrine and appellants plausibly alleged that appellees engaged in fraud. Therefore, the court vacated the judgment and remanded for further proceedings. In 15‐1146, the court held that the appeal of the judgment dismissing the action to confirm was moot and accordingly dismissed that appeal. View "CBF Industria De Gusa S/A v. AMCI Holdings, Inc." on Justia Law

The Foundation agreed to lend $2 million pursuant to a loan agreement to Al-Harmoosh for a company headquartered in Iraq. After Mohammed Harmoosh, a managing partner of the company, refused to pay the loan, the Foundation filed suit for breach of contract in Maryland. Harmoosh moved to dismiss based on an arbitration clause in the loan agreement. The district court dismissed the Foundation's complaint. The Foundation later filed another suit against Harmoosh to collect on the promissory note, this time in the Court of First Instance for Commercial Disputes in Baghdad. After the Foundation and Harmoosh litigated their dispute to final judgment in Iraq, the Foundation filed suit in the District of Maryland, seeking recognition of the Iraqi judgment under the Maryland Uniform Foreign Money-Judgments Recognition Act, Md. Code Ann., Cts. & Jud. Proc. 10-701 et seq. The Foundation also alleged that Harmoosh fraudulently conveyed some of his assets both before and after the Iraqi judgment was rendered. The district court granted summary judgment to Harmoosh on the Maryland Recognition Act claim, and granted Harmoosh's motion to compel arbitration. The court held that judicial proceedings in a foreign court are not "contrary to" an arbitration clause for the purpose of the Maryland Recognition Act if the parties choose to forego their rights to arbitrate by paricipating in those proceedings. The court also concluded that the Foundation raised genuine issues of material fact that preclude a summary judgment holding that Harmoosh preserved his arbitration rights. Accordingly, the court vacated and remanded. View "Iraq Middle Market Development v. Harmoosh" on Justia Law

CBF, appellants and award-creditors, challenged the district court's two judgments dismissing CBF's initial action to enforce and subsequent action to confirm a foreign arbitral award against appellees as alter-egos of the then defunct award-debtor. The court held that the district court erred in determining that the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards and Chapter 2 of the Federal Arbitration Act, 9 U.S.C. 201 et seq., require appellants to seek confirmation of a foreign arbitral award before the award may be enforced by a United States District Court, and in holding that appellants’ fraud claims should be dismissed prior to discovery on the ground of issue preclusion as issue preclusion is an equitable doctrine and appellants plausibly allege that appellees engaged in fraud. In No. 15-1133, the court vacated the dismissal of the action to enforce and remanded for further proceedings. In No. 15-1146, the court found the appeal of the district court's order in the action to conform is moot and dismissed the appeal. View "CBF Industria De Gusa S/A v. AMCI Holdings, Inc." on Justia Law

After ENPH filed under a power purchase agreement (PPA) for arbitration by the ICC, the ICC issued an award in ENPH's favor. Nigeria now appeals from the order granting enforcement of the Award. The court rejected Nigeria's contention that enforcement of the Award violates the public policy of the United States not to reward a party for fraudulent and criminal conduct pursuant to Article V(2)(b) of The Convention on the Recognition and Enforcement of Foreign Arbitral Awards (known as the “New York Convention”), 21 U.S.T. 2517. The court rejected Nigeria's contention, concluding that the ICC’s findings, to which an enforcing court owes substantial deference, doom Nigeria’s public policy defense in the absence of evidence or equities warranting the piercing of Enron’s corporate veil. Accordingly, the court affirmed the judgment. View "Enron Nigeria Power Holding, Ltd. v. Federal Republic of Nigeria" on Justia Law

Plaintiff, a United States citizen, worked as the lead trumpeter on a passenger Royal Caribbean cruise ship. The ship is a Bahamian flagged vessel with a home port in Fort Lauderdale, Florida. Royal Caribbean, the operator of the vessel, is a Liberian corporation with its principal place of business in Florida. After plaintiff became ill while working for Royal Caribbean, he filed suit alleging unseaworthiness, negligence, negligence under the Jones Act, maintenance and cure, and seaman’s wages and penalties. Royal Caribbean moved to compel arbitration, and the district court granted the motion. This appeal presents an issue of first impression: whether a seaman’s work in international waters on a cruise ship that calls on foreign ports constitutes “performance . . . abroad” under the United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 9 U.S.C. 202. The Convention makes enforceable an arbitration agreement between United States citizens if their contractual relationship “envisages performance . . . abroad.” The court affirmed the order compelling arbitration of the dispute because a seaman works abroad when traveling in international waters to or from a foreign state. View "Alberts v. Royal Caribbean Cruises, Ltd." on Justia Law

COMMISA contracted with PEP to build oil platforms in the Gulf of Mexico. When the parties accused each other of breach of contract, COMMISA initiated arbitration proceedings, prevailed, and obtained an award of approximately $300 million. The district court then affirmed the award and PEP appealed, while simultaneously attacking the arbitral award in the Mexican courts. The court held that the Southern District properly exercised its discretion in confirming the award because giving effect to the subsequent nullification of the award in Mexico would run counter to United States public policy and would (in the operative phrasing) be “repugnant to fundamental notions of what is decent and just” in this country; PEP’s personal jurisdiction and venue objections are without merit; and the Southern District did not exceed its authority by including in its judgment $106 million attributed to performance bonds that PEP collected. Accordingly, the court affirmed the judgment. View "Corporacion Mexicana De Mantenimiento Integral v. Pemex-Exploracion" on Justia Law