650 F. App'x 14
D.C. Cir.2016Background
- In 2002 Newco Ltd. contracted with Belize to operate the international airport; Belize repudiated the agreement within a year.
- An arbitral tribunal in Miami awarded Newco about $4.3 million; Belize agreed to pay only on condition it could (a) pay in Belize dollars and (b) deduct alleged unpaid taxes (~$2.7 million).
- Newco sued in the U.S. District Court for the District of Columbia to enforce the award; Belize filed suit in Belize and obtained an anti-suit injunction, prompting a stay in D.C. while Belize litigation proceeded.
- The Belize Supreme Court held Belize could deduct unpaid taxes and pay in Belize dollars; Newco refused those conditions and renewed enforcement in D.C.
- The District Court enforced the arbitral award; Belize appealed arguing international comity (as a procedural rule), public policy, and forum non conveniens.
Issues
| Issue | Plaintiff's Argument (Newco) | Defendant's Argument (Belize) | Held |
|---|---|---|---|
| Whether international comity, as a U.S. procedural rule, bars enforcement under the New York Convention | Newco: enforcement should proceed under FAA/New York Convention | Belize: New York Convention requires enforcement "in accordance with the rules of procedure of the territory," and comity is such a rule | Court: Belize failed to show comity is a U.S. procedural rule; enforcement not barred |
| Whether enforcement violates U.S. public policy under New York Convention art. V(2)(b) | Newco: no U.S. basic notions of morality or justice are offended by enforcement | Belize: comity/public-policy concerns justify refusing enforcement | Court: public-policy exception applies only in clear-cut cases; Belize did not show violation of fundamental U.S. morality/justice; enforcement allowed |
| Whether forum non conveniens requires dismissal of enforcement action | Newco: FAA/precedent allow enforcement actions in U.S. | Belize: D.C. is inconvenient; action should be dismissed in favor of Belize forum | Court: forum non conveniens does not apply to U.S. enforcement actions against foreign states (controlled by precedent); dismissal improper |
| Whether FAA/New York Convention requires enforcement absent specified defenses | Newco: FAA/NY Convention mandate enforcement unless a Convention defense applies | Belize: raised comity/public policy/forum non conveniens defenses | Court: enforced award under 9 U.S.C. § 207; none of Belize's defenses succeeded |
Key Cases Cited
- Termorio S.A. E.S.P. v. Electranta S.P., 487 F.3d 928 (D.C. Cir. 2007) (public‑policy exception reserved for clear‑cut violations of basic notions of morality and justice)
- Belize Social Development Ltd. v. Belize, 668 F.3d 724 (D.C. Cir. 2012) (emphatic federal policy favoring arbitration against competing comity concerns)
- TMR Energy Ltd. v. State Property Fund of Ukraine, 411 F.3d 296 (D.C. Cir. 2005) (forum non conveniens does not apply to enforcement actions in the U.S. against foreign nations)