Mealey's International Arbitration : Mealey's : Legal News & Analysis

Mealey's International Arbitration

July 21, 2023
Judge Overrules Objections To CITGO Auction To Enforce Award Against Venezuela

WILMINGTON, Del. — A Delaware federal judge overruled remaining objections to a planned auction of the Bolivarian Republic of Venezuela’s holdings in CITGO Petroleum Corp. to enforce an arbitral award worth more than $1.4 billion against it for expropriating gold mines, calling Venezuela’s objections to the auction “utterly unpersuasive” and setting a tentative launch date for marketing of the auction on Oct. 23.
July 20, 2023
Brazilian Companies Seek To Confirm $38M Award Against Solar Panel Maker

NEW YORK — Fourteen Brazilian companies filed a petition in New York federal court seeking to confirm an International Chamber of Commerce (ICC) award worth more than $38 million against a Singaporean solar panel manufacturer for failure to fulfill a solar panel sales agreement.
July 20, 2023
Judge Finds No Jurisdiction Over Chinese Businessman In $145M Award Row

NEW YORK — A New York federal judge granted a Chinese businessman’s motion to dismiss a Cayman Islands’ entity’s petition to confirm a Hong Kong International Arbitration Centre (HKIAC) arbitral award against him for an investment dispute worth more than $145 million, finding that the court lacks personal jurisdiction over the businessman despite his participation in defending his company from litigation in the same district court.
July 19, 2023
On Remand, Judge Again Rejects $1M Award Against Nonsignatory To Flooring Contract

PHILADELPHIA — A Pennsylvania federal judge on July 18 denied a Chinese company’s petition to confirm a China International Economic and Arbitration Commission (CIETAC) arbitral award worth nearly $1 million against a Pennsylvania company for a dispute over a flooring contract, finding that the award-creditor failed to prove that a valid arbitration agreement existed.
July 18, 2023
11th Circuit Won’t Remand Pineapple Award Row Despite New Arbitration Precedent

ATLANTA — An 11th Circuit U.S. Court of Appeals panel denied a Costa Rican farming company’s motion for limited remand to reconsider its defenses to a more than $30 million arbitration award for a pineapple dispute based on new precedent recently issued by the en banc 11th Circuit and separately affirmed a federal judge’s refusal to award a California-based food company disgorgement for the Costa Rican party’s pineapple sales.
July 14, 2023
Moldovan Businessmen Seek Dismissal Of Kazakhstan Fraud Claims In $500M Award Row

WASHINGTON, D.C. — Two Moldovan investors and their companies moved in District of Columbia federal court to dismiss a complaint filed by the Republic of Kazakhstan seeking relief from the court’s judgment in a separate action confirming an arbitral award worth more than $500 million against it based on alleged fraud, which the Moldovan parties argue is untimely, doesn’t contain new evidence and doesn’t warrant relief from the judgment.
July 14, 2023
U.S. Oil Company Urges 2nd Circuit To Rehear $392M Award In Ecuadorian Oil Dispute

NEW YORK — A California oil company petitioned the Second Circuit U.S. Court of Appeals on July 13 to rehear en banc a panel’s ruling confirming an arbitral award against it worth more than $392 million for withholding another oil company’s share of a $1 billion award against the Republic of Ecuador, writing that the panel did not adequately address its contention that an arbitrator hearing the dispute “blatantly violated his disclosure obligations under the parties’ arbitration agreement.”
July 13, 2023
Libya Not Entitled To ‘Independent Review’ Of $27M Award, 2nd Circuit Says

NEW YORK — The Second Circuit U.S. Court of Appeals on July 12 affirmed the confirmation of an International Chamber of Commerce (ICC) award worth more than $27 million against Libya for the attempted expropriation of land on which a Cypriot company built a juice and dairy factory, writing that a federal judge was not required to independently review the arbitrability of the dispute because Libya consented to the tribunal deciding that issue.
July 11, 2023
Venezuela’s Alter Ego Liability In $2.7B Award Cases Affirmed By 3rd Circuit

PHILADELPHIA — The Third Circuit U.S. Court of Appeals again affirmed that a federal court properly exercised its jurisdiction in granting six award-creditors’ writs of attachment to enforce judgments collectively worth more than $2.7 billion against the Bolivarian Republic of Venezuela’s state-owned oil company Petróleos de Venezuela S.A. (PDVSA) as an alter ego of the state, finding that its alter ego status was not ended by changes in the republic’s leadership.
July 10, 2023
Croatia Tells Judge $236M Award To Hungarian Gas Company Violates EU Law

WASHINGTON, D.C. — The Republic of Croatia on July 7 moved in a District of Columbia federal court to dismiss a Hungarian gas company’s petition to enforce an International Centre for Settlement of Investment Disputes (ICSID) arbitration award in its favor worth more than $236 million, writing that the court lacks jurisdiction because the underlying arbitration agreement was later invalidated by rulings of the European Union’s highest court.
July 10, 2023
Federal Judge Dismisses Bid To Remove Arbitrator In Reinsurance Row

NEW YORK — Ruling that the court lacks “authority to remove a sitting arbitrator in an arbitration proceeding conducted under Bermuda procedural law, and in any event, the petition fails on the merits,” a New York federal judge granted dismissal of a lawsuit seeking replacement of an arbitrator in a proceeding concerning two reinsurance contracts between Bermuda-based entities.
July 07, 2023
Australian Entity Asks Court To Confirm $15M Award For Albanian Oil Dispute

WASHINGTON, D.C. — An Australian entity, as assignee of a Cayman Islands oil investor’s rights in an International Chamber of Commerce (ICC) arbitral award worth nearly $15 million against Albanian government agencies and an Albanian company, filed a petition in District of Columbia federal court seeking to confirm the award for a dispute over new taxes imposed on oil sales and production after the investor agreed to develop three oilfields.
July 06, 2023
Mexico, Canadian Investor Refile Petitions In Dispute Over $47M ICSID Award

WASHINGTON, D.C. — The United Mexican States and a Canadian real estate investor filed dueling petitions in District of Columbia federal court disputing whether it should vacate or confirm an International Centre for Settlement of Investment Disputes (ICSID) arbitral award in favor of the lender for its “denial of justice” claim worth approximately $47 million based on Mexican courts’ alleged failure to prevent loan fraud.
July 05, 2023
Food Distributor, Litigation Funder Drop Row Over LCIA Award

An Illinois federal judge dismissed a food distributor and its Guernsey-based third-party litigation funder’s dispute over a London Court of International Arbitration (LCIA) award that preliminarily enjoined the distributor from accepting a settlement to resolve separate antitrust litigation after the parties stipulated to dismissal, while their related action in New York federal court is pending dismissal after the parties agreed to drop the dispute.
June 30, 2023
Dutch Appeals Court Refuses To Confirm $15B Award Against Malaysia

THE HAGUE, Netherlands — The Court of Appeal of the Hague refused to recognize an arbitral award against Malaysia for roughly $15 billion issued in an ad hoc arbitration by a sole arbitrator in favor of the descendants of the Sultan of Sulu for unpaid lease payments for land formerly belonging to their ancestor that is now part of Malaysia.
June 30, 2023
Investors, Spain Clash In Intra-EU Jurisdictional Dispute Before D.C. Circuit

WASHINGTON, D.C. — European investors seeking to confirm two arbitral awards and the Kingdom of Spain filed appellee briefs June 29 in the District of Columbia Circuit U.S. Court of Appeals in three appeals being heard by one panel concerning whether European investors can seek enforcement of International Centre for Settlement of Investment Disputes (ICSID) awards despite European Union legal rulings prohibiting intra-EU arbitration.
June 28, 2023
Djibouti Tells D.C. Circuit Creditor In $541M Dispute Didn’t Authorize Litigation

WASHINGTON, D.C. — The Republic of Djibouti in an appellant brief filed in the District of Columbia Circuit U.S. Court of Appeals says that a federal judge erred by confirming two London Court of International Arbitration (LCIA) arbitral awards worth more than $541 million against it despite the fact that the petitioner, a Djibouti-based joint venture, is currently under the control of an administrator who did not authorize the filing of the petition.
June 28, 2023
EU Tells D.C. Circuit Confirmed Award Against Romania ‘Disregards’ Comity

WASHINGTON, D.C. — The European Union’s executive branch, the European Commission (EC), filed an amicus curiae brief to the District of Columbia Circuit U.S. Court of Appeals supporting the government of Romania’s fourth appeal challenging an arbitral award worth more than $350 million against it, writing that U.S. courts should abide by a ruling from the EU’s highest court prohibiting payment of the award in favor of Swedish investors.
June 28, 2023
9th Circuit Sanctions Saudi Heirs’ Lawyer For Fake Article In $18B Award Fight

SAN FRANCISCO — The Ninth Circuit U.S. Court of Appeals adopted a special master’s report and recommendations that an attorney for the heirs of Saudi Arabian sheikhs be sanctioned by being required to pay an oil company’s attorney fees incurred litigating his filing of a fraudulent news article as evidence in support of his attempts to enforce a controversial $18 billion arbitral award and adopted the recommendation that the attorney be referred for disciplinary proceedings.
June 27, 2023
Bid To Confirm Award For Brazilian Sales Dispute Belongs In Florida, Magistrate Says

ORLANDO, Fla. — A Florida federal magistrate judge on June 26 recommended denying a Brazilian holding company and its owner’s motion to dismiss a petition to confirm an arbitral award against them worth more than 2.5 million Brazilian reais for allegedly draining Brazilian assets, in part through Florida real estate purchases, to evade payment of various debts.
June 27, 2023
Moldova Moves For Relief From $58.6M Award Citing French Court’s Vacatur

WASHINGTON, D.C. — The Republic of Moldova on June 27 moved in District of Columbia federal court for relief from judgments entered confirming an arbitral award worth more than $58.6 million against it for an electricity contract dispute, citing a French appellate court’s recent ruling voiding the award.
June 26, 2023
ICSID Rejects Russian Telecommunications Company’s $2.1B Claim Against Turkmenistan

WASHINGTON, D.C. — An International Centre for Settlement of Investment Disputes (ICSID) tribunal ordered a Russian telecommunications company to pay the nation of Turkmenistan more than $11 million in costs and fees after rejecting its claims for $2.1 billion in damages for harm to its telecommunications investment, finding no evidence that Turkmenistan was liable for the company’s claimed treaty breaches.
June 26, 2023
Ukrainian Oil Company Sues To Enforce $5B Award Against Russia

WASHINGTON, D.C. — A Ukrainian state-owned oil company and five of its subsidiaries filed a petition in District of Columbia federal court to confirm a Permanent Court of Arbitration (PCA) tribunal’s award worth roughly $5 billion against the Russian Federation representing the lost value of gas and oil assets seized after Russia annexed Crimea in 2014.
June 26, 2023
Recycler Urges 1st Circuit To Reconsider Arbitration With Foreign Insurer

BOSTON — A Puerto Rican recycling company on June 23 filed a petition for rehearing en banc to the First Circuit U.S. Court of Appeals, arguing that its ruling requiring the recycler to enter arbitration with its foreign insurers improperly held that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York Convention) preempts the Puerto Rico Insurance Code’s anti-insurance arbitration provision.
June 23, 2023
New Balance Settles South American Dispute After 1st Circuit Upholds Award

BOSTON — A joint stipulation of voluntary dismissal with prejudice was filed in the First Circuit U.S. Court of Appeals by New Balance Athletics Inc., an Ecuadorian businessman and his Peruvian company shortly after the First Circuit reversed a district court’s vacatur of an approximately $3.3 million arbitration award against the businessman and his company for a distribution dispute with New Balance.