In Re the Arbitration of Certain Controversies Between Getma International & Republic of Guinea
191 F. Supp. 3d 43
| D.D.C. | 2016Background
- Getma sought confirmation and enforcement in D.D.C. of a €39 million CCJA arbitral award against the Republic of Guinea under the New York Convention (9 U.S.C. § 201).
- The three-member CCJA arbitral tribunal sought to increase its collective fees to ~€450,000; the CCJA twice denied the tribunal authority to obtain increased fees and instructed fee-setting is exclusive to the CCJA.
- The tribunal nevertheless solicited the parties and collected ~€225,000 from Getma; Guinea refused to pay and thereafter filed for annulment before the CCJA.
- The CCJA, sitting en banc, annulled the award because the tribunal violated CCJA Arbitration Rules by soliciting increased fees outside CCJA authority.
- Getma argued the annulment violated U.S. public policy and asked this Court to confirm and enforce the award despite the CCJA annulment; the Court declined.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a U.S. court may confirm an award annulled by the competent foreign authority | Getma: Annulment is "repugnant to U.S. public policy" and violates basic notions of justice, so U.S. enforcement is warranted | Guinea: CCJA is the designated forum under the parties' agreement; annulment by competent authority bars U.S. confirmation except in narrow extraordinary cases | Court: Denied confirmation — U.S. may decline to enforce only in narrow, high-bar public-policy cases; this is not one |
| Whether CCJA annulment was so arbitrary or unjust as to offend U.S. public policy | Getma: CCJA acted inconsistently, initially permitted communications and later reversed; rescission was unjust and caused prejudice | Guinea: CCJA followed its precedent and rules that fees are exclusively set by the court; reversal was within its discretion and not a U.S.-public-policy violation | Court: CCJA’s reversal and reliance on precedent is not equivalent to violating U.S. basic notions of morality and justice; erroneous reasoning alone insufficient |
| Whether alleged improper influence/bias (appointment and ex parte contacts) tainted annulment | Getma: Guinean Minister of Justice statements and appointment of a Guinean judge show bias and improper influence on CCJA | Guinea: Minister’s later affidavit disclaims the interview’s accuracy; judge’s appointment was lawful and occurred after Guinea’s last submission; no proof of ex parte contacts that affected outcome | Court: Allegations unproven and speculative; single judge’s nationality or post-hoc statements do not overcome unanimous en banc decision consistent with rules |
| Whether parties’ arbitration clause allowed contracting around CCJA fee rules | Getma: Parties agreed to bear arbitration costs and expected to pay increased fees; CCJA should have honored that contractual allocation | Guinea: Concession Agreement submitted disputes to CCJA rules, which assign fee-setting exclusively to CCJA; any agreement to the contrary is void under CCJA precedent | Court: Parties accepted CCJA Rules; clause did not override CCJA authority; enforcement would undermine principal precept that competent foreign setting-aside precludes U.S. enforcement |
Key Cases Cited
- TermoRio S.A. E.S.P. v. Electranta S.P., 487 F.3d 928 (D.C. Cir.) (narrow public-policy exception to enforcement of foreign-annulled awards)
- Ackermann v. Levine, 788 F.2d 830 (2d Cir. 1986) (judgment that clearly undermines public interest may violate public policy)
- Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473 U.S. 614 (U.S. 1985) (strong federal policy favoring arbitration, especially international)
- Karaha Bodas Co. v. Perusahaan Pertambangan Minyak Dan Gas Bumi Negara, 364 F.3d 274 (5th Cir.) (erroneous legal reasoning typically not a public-policy basis to refuse enforcement)
- Parsons & Whittemore Overseas Co. v. Societe Generale De L’Industrie Du Papier (RAKTA), 508 F.2d 969 (2d Cir.) (agreeing to arbitration entails relinquishing courtroom rights and accepting arbitration drawbacks)
