Continental Transfert Technique Ltd. v. Federal Government
800 F. Supp. 2d 161
D.D.C.2011Background
- Arbitration between Continental and Nigeria occurred in 2007 to resolve a contract dispute.
- The arbitral award in favor of Continental totaled 29.6 billion Nigerian naira, plus costs (including 95% of arbitration costs).
- Nigeria sought to have the award recognized in the UK and sought to stay or vacate enforcement based on Nigerian court proceedings.
- Continental sought enforcement in the United States under the New York Convention and, later, under the DC Uniform Foreign-Money Judgments Recognition Act (UFMJRA) for the English judgment.
- The Nigerian court later found the arbitral award valid and enforceable, and the English judgment remained subject to a stay only if security was posted but such security was never posted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the arbitral award is enforceable under the New York Convention | Continental argues no grounds exist to refuse enforcement | Nigeria contends possible vacatur or stay due to Nigerian proceedings | Yes, enforceable; summary judgment granted |
| Whether the English judgment is enforceable under the UFMJRA | English judgment is final and enforceable | Nigeria did not show bond was posted or effective stay | Yes, enforceable under UFMJRA |
| Whether ongoing Nigerian proceedings negated enforcement | Proceedings resolved in Continental's favor; no basis to stay | Forum considerations warranted stay | No; no basis to refuse enforcement |
Key Cases Cited
- Termorio S.A. E.S.P. v. Electranta S.P., 487 F.3d 928 (D.C.Cir. 2007) (recognition/enforcement under NY Convention; summary enforcement procedure)
- In re Chromalloy Aeroservices, Inc., 939 F. Supp. 907 (D.D.C. 1996) (standard for enforcement under New York Convention; grounds for refusal)
- Jiangsu Changlong Chems., Co. v. Burlington Bio-Med. & Scientific Corp., 399 F. Supp. 2d 165 (E.D.N.Y. 2005) (enforcement as a summary proceeding under NY Convention)
