Magazine article Dispute Resolution Journal

A Proper Party to the Arbitration

Magazine article Dispute Resolution Journal

A Proper Party to the Arbitration

Article excerpt

INTERNATIONAL

The 2nd Circuit held that an award under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards could be confirmed against a sovereign nation where one of its political organs was a party to the contract containing the arbitration clause.

Companie Noga d'Importation et d'Exportation entered into a loan agreement with a former Soviet Socialist Republic in order to finance supply contracts for basic necessities with state-owned agencies. The next year it entered into a loan agreement with the government of the Russian Federation to finance similar supply contracts with another agency of the Russian Federation and to discharge state debts to foreign suppliers. Both agreements provided for arbitration of disputes in Stockholm, using Swedish law. Noga declared the loan agreements in default and commenced an arbitration against the Russian Federation. The Government objected and sought to require Noga to name it as respondent, since the Russian Federation had not signed the contracts. The arbitrators never ruled on this point. After a lengthy arbitration during which the Government arbitrated with Noga, the tribunal held in the Phase T award that Noga was justified in declaring the default, and in the Phase II award that Noga was entitled to consequential damages. Noga assigned portions of the awards to four Swedish banks. It also sought to enforce the Phase II award under the New York Convention in a lawsuit naming the Russian Federation as the defendant. The district court denied Noga's motion to confirm the Phase I award. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.