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Philadelphia Business Lawyers: Foreign Arbitration

In a recent decision out of the Second Circuit, a U.S. Court of Appeals held that American courts can enforce an international arbitral award notwithstanding the fact that it was annulled by a court in a foreign country.

In Commisa v.Pemex, a Mexican subsidiary of a Texas corporation (Commisa) sued a state-owned Mexican oil company (Pemex), regarding several contracts to build infrastructure in the Gulf of Mexico, after a Mexican arbitral tribunal awarded the Texas company over $350 million. A Mexican court later set aside the award. Commisa then sought enforcement in the United States, and a New York district court judge held that the award should be enforced. The Second Circuit affirmed his ruling.

The Second Circuit noted that under the Panama Convention, American courts must enforce the award unless one of seven defenses enumerated in the Panama Convention is established. Although one of those seven defenses (a set aside) was satisfied, the judge ruled that he was constrained by the prudential concern of international comity—and that the Mexican decision violated international policy.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green, P.C. frequently represent Businesses in Arbitration

If your business is involved in a commercial dispute that is subject to arbitration, the Philadelphia business lawyers at Sidkoff, Pincus & Green may be able to help you. To learn more or schedule a consultation, call us at 215-574-0600 or contact us online today.