Bloomberg Law published an article written by Cross-Border Asset Recovery Practice Chair Kevin Ainsworth about Amaplat Mauritius Ltd. v. Zimbabwe Mining Dev. Corp., where the DC Circuit dismissed a bid to recognize a foreign court judgment confirming a foreign arbitration award against a sovereign. The court held that US federal courts lack jurisdiction under the Foreign Sovereign Immunities Act when such claims are filed after the three-year deadline, and rejected the petitioners’ implied waiver arguments.

“International arbitration is popular, especially against sovereigns, because it provides comfort that a neutral arbitrator—not the courts of a party’s home country—will decide a dispute,” Kevin writes. “But winning an arbitration award is only half the battle. Such awards don’t have the force of law, so if a party refuses to comply, the prevailing party must ask a court to recognize and enforce it. Concerns about impartiality arise. Nobody is eager to return to the courts of the losing party’s country, especially if the losing party is a sovereign.”

Source

Bloomberg Law