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- UNITED STATES 30 July 2024 Doraleh
UNITED STATES 30 July 2024 Doraleh
United States Court of Appeals, District of Columbia Circuit, 30 July 2024, No. 23-7023
(Doraleh Container Terminal SA v. Republic of Djibouti)
UNITED STATES 30 July 2024 Doraleh
The law firm which had represented Doraleh in arbitration proceedings sought to have the resulting award in Doraleh’s favor confirmed in the United States. However, Djibouti had nationalized its majority interest in Doraleh, a Djiboutian court had appointed a provisional administrator to manage the company, and the administrator was opposing confirmation on the ground that she did not authorize the application. The district court granted confirmation, holding that the law firm’s authority was irrelevant and also that authority is not one of the enumerated defenses under the New York Convention. The Court of Appeals vacated and remanded. It held that, in accordance with longstanding legal principles, authority was relevant and the authority issue can be raised at any point in litigation. Because Djibouti presented evidence raising substantial questions about the law firm’s authority, the district court should have determined whether they had authority to request the award’s confirmation.
The court discusses the principle that the procedure for the enforcement of awards under the Convention is governed by the lex fori, as well as procedural issues (such as the competent enforcement court) not falling under the specific cases of ¶¶ 302-307.
The court discusses questions relating to the general approach taken by the Convention to the grounds for refusal of recognition and enforcement, including its pro-enforcement bias, as well as the system of the Convention, under which recognition and enforcement may only be denied on seven listed grounds and the petitioner has only the obligations set out in Art. IV.