UNITED STATES 1043

United States District Court, Southern District of New York, 26 January 2022, 21-cv-6704 (PKC)
(Preble-Rish Haiti, S.A. v. Republic of Haiti, Bureau de Monétisation de Programmes d'Aide au Développement)
 

26 - 01 - 2022

UNITED STATES 1043

Jurisdiction United States
Summary

The Court granted confirmation of an award rendered in New York between two Haitian parties. The respondent argued that it had been unable to defend itself in the arbitration – an argument that the Court constructed as being brought under Art. V(1(b) of the New York Convention – because the arbitrators had held a hearing in the middle of a COVID-19 surge in Haiti, less than three weeks after the assassination of Haiti's President, and despite the respondent's request that the hearing be postponed. The Court concluded that while these were certainly significant and relevant factors to consider, the record showed that the respondent did have an opportunity to present its case at the arbitration hearing, which was conducted in New York. The Court also denied the contention that the arbitral panel had been improperly formed because two of the arbitrators were former partners of the claimant's counsel in a law firm, and the third arbitrator was directly associated with the same counsel via membership in an organization. The Court explained that Art. V(1)(d) of the Convention merely required that the arbitrators be selected in accordance with the terms of the arbitration agreement, and that the arbitrators had been so selected in this case. The Court finally rejected the claim that enforcing the improperly procured award against against a longstanding ally was contrary to the public policy of the United States within the meaning of the public policy exception in Art. V(2)(b) of the New York Convention. The Court noted that the law of the Circuit was that this exception had to be construed very narrowly to encompass only those circumstances where enforcement would violate the most basic notions of morality and justice. This was not the case here, and enforcement would actually further the United States' strong public policy in favor of international arbitration

Related topics
301

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.

Procedure for enforcement in general
500

The court discusses the overall scheme and/or pro-enforcement bias of the Convention.

Grounds for refusal of enforcement in general
509

Due process: The court discusses what constitutes “proper notice” of the appointment of the arbitrators or of the arbitration proceedings.

"Proper notice"
511

Due process: The court discusses various irregularities affecting due process, including letters not sent, names of arbitrators or experts not communicated, language of proceedings and communications, etc.

"Otherwise unable to present his case"
518

Public policy: The court discusses the meaning of (international as compared to domestic) public policy, generally defined as the basic notions of morality and justice of the enforcement State.

Paragraph 2 - Distinction domestic-international public policy
524

Public policy: The court discusses the effect of other alleged violations of public policy on the recognition and enforcement of an arbitral award, such as contradictory reasons, manifest disregard of the law (US), etc.

Other cases
UNITED STATES 1043