Non-U.S. Arbitral Award Confirmed Against Non-U.S. Sovereign Under FSIA Exception

Thai-Lao Lignite (Thailand) Co., et al v. Government of the Lao People's Democratic Republic, 10 Civ. 5256 (S.D.N.Y Aug. 2011), presents a recent analysis of cross-motions to vacate and confirm arbitral awards, a mainstay in the international dispute resolution play book. The decision provides learning on several timely topics that we address more fully in the discussion of the enforcement and recognition of non-U.S. arbitral awards against non-U.S. sovereigns in our e-book, International Practice: Topics and Trends.

The agreement between the litigants provided for arbitration in Malaysia at the Kuala Lumpur Regional Centre for Arbitration under the UNCITRAL rules, with an award being permitted to be entered as a judgment "in any court of competent jurisdiction". Even though the respondent was a sovereign state, the parties' agreement itself contained a broad waiver of sovereign immunity. The District Court upheld this waiver.